The trouble with download only games

I prefer physical copies of my games.  I like having the box, manual and cartridge, cd or DVD etc.  However there is a worrying trend of moving towards download only games and DLC for games.

So what is wrong with download-only games?

My main issue with this distribution method of games is - what if the my Xbox 360 dies?  You might think, that's simple - just redownload all of your games.  That may well be fine now but how about in 5 years time... 10 years time, will I still be able to redownload all of the DLC and games from Xbox Live?  Will Xbox Live even exist in 10 years time?  I doubt even if it does that support for the previous generation console will still be around (don't forget how quickly support for the original Xbox went away)
So as time goes by the chance of my Xbox 360's HDD failing increases making it more likely that I would need to download my games again - yet conversly the chance of me being able to do so decreases!

Game developers "pulling" games from XBLA, PSN etc

OK so my main issue posted above might not bother a lot of people.  I like to play games long after they are "in" and "hip" etc but maybe most people do not.  However what really did disapoint me recently is that when my last Xbox broke I bought a shiny new one, with a bigger HDD.  Microsoft provide a neat tool to re-download all of your games onto your new Xbox and I left it to do its thing.  Then I went to play SEGA's Outrun Online Arcade.  Do you know where it is?  Can you find it on Xbox Live?  No.  It's gone because SEGA's license with Ferrari has "ran out"... I do not understand how this can make the game be pulled.  If that happens with a physical copy of the game they do not order that all unsold disks be destroyed do they!?  Yet it is now unobtainable - a game that I paid for is not accessible to me because of some legal wrangling and I think that is completely insane!

Outrun online arcade - make sure that you never lose or accidently delete it because once it's gone its gone

That is not the only one Ultimate Mortal Kombat 3 was quietly pulled for new customers.  I noticed that its images etc are no longer consistent with the "new" dashboard images (just a small icon in a big grey box).  I assume that this is because midway decided that they would rather their customers spend some more money on its new "classic" MK offering.  It can still be downloaded IF you have already purchased it which I suppose is nice but its simply not available anymore.