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I dont see optical media down-for-the-count just yet. While USB flash drives are generally bigger the a DVD at 4.7 gigs, blu-ray has specs for up to 200 gig per disk.
For taking music, porn or whatever over to your buds house a flash drive is often easier and smaller. For distributing movies, music, games and other software, disks are cheaper then flash memory and while I see digital downloads expanding more and more I think it will be quite some time before the optical disk is DOA.
I for one dont think I would be happy with a digital download of windows -- though I have made it work with linux (by using disk or flash drive). slower speeds and possible damage/scratches from the DVD make me an unhappy camper, along with the noise that comes along with it
My thoughts anyways -- Anyone think optical is dead and just not buried yet? I am interested to hear the counter arguments!