Hate to break it to you, but things are cheaper nowadays. I can't even begin to think what my 1000-game Steam library would cost, or the size it would take up in real disks / packaging. Probably several SHELVES judging by the DVD's I have in front of me.
And, to be honest, my girlfriend bought a tablet Windows PC - the cheapest available - and it came with a year of Office 365 for up to five machines. We've since installed all five copies of the latest office. Back in the day, to do that legitimately, would have cost a lot more - hell, it could easily have cost upwards of $500-1000. Sure, next year we have to pay a pittance to keep it up, but we also get all the new versions too, and the option to use what we want.
That would have been unthinkable before online downloads. And, even now, if you buy volume editions on a proper licence of Windows, Office, Server, Exchange, etc. they are ALL downloads. You can pay extra for a DVD, but who the hell is going to do that?
To be honest, factored over the life of software, downloads are not a huge deal. And Steam is as "permanent" a licence as you can get nowadays. Why that stops replayability, I don't know. And the used game market is dead because I can get my own copy in a year's time for less than a used copy would ever be able to go for. We actually cut out a middle-man there.
To be honest, when done properly, it's hard to argue against it. Certainly my Google Play and Amazon Instant Video libraries are more useful, convenient and cheaper than anything on DVD too. And when it comes to DRM done properly, it's hard to pick fault with Steam, to be honest. There's a reason I have 1000 games on it. I'd be shocked if they cost anywhere near the cost of 1000 DVD-ROM's, even blank ones, plus the cost of storing those online for 24/7 download for 10 years, let alone the licence to the software in the first place.