That last part's easily fixed with a "No CD/DVD" patch, which are usually available about a week after a release... sooner for big titles
And it's not fear at all. It's knowing that at some point, the services will be gone or reduced, and the games you paid for will go with them unless you can back them up (ala Steam, Impulse, etc.). Streaming doesn't offer backups of your games, and things like the Wii that tie your downloaded games to a console that can die and take them with it, simply makes no sense to me as a consumer. Something that used to last for decades, now only lasts as long as the company stays in business (OnLive), doesn't drop your game from its list (OnLive), or as long as your system still works (Wii). I don't see an upside to that.
I too pay for an experience. And flipping through a manual, opening up a world map, knowing that the discs I paid for are professional quality (usually), artwork abound on the disc(s), manual and insert... that's all part of the experience for me. And when all those physical goodies go away, yet I'm still paying the same price... that irks me. You save no money realistically with digital downloads, and in ways, you get less for that money, as you have to expend your own resources to make backups and ensure those backups never go bad as the years roll on.
As I said, it's not fear, and I do enjoy Steam. But in truth, it's getting less, while paying the same. $60 for a downloadable game for you to save on your own, or $60 for a hard copy with box, art, discs, manuals, etc. I'll go with the latter every time.