Steam is highly successful and they don't deal with physical copies at all. DRM is where we are headed in the next five years anyway. Like it or not. I respect your opinion though.
Microsoft is poised to come back strong, but I'm in the minority of people that wished they kept always-on DRM and the Kinect. It benefits the industry by giving more diverse options as opposed to copy catting.
Looks great but just not worth the price.