I read something a while ago that relates to this topic so i may as well post it.
THQ's possible future strategy for gameshttp://www.computerandvideogames.com/ar ... ?id=266171
I think its partly a good idea. Get a demo and then you buy the rest of the full game that you want. I think the system would work perfectly for some games like burnout paradise where you could buy the different districts to drive round, but not so well for any single player game. I know people complain alot in the comments about how it would cost more and i honestly think they just read the "upto $100" and posted a comment complaining. If you add it up though some people have spent that on games like Dragon Age or Fallout 3 without realising. The only downside would be it would be nearly all digital distribution and the cons would still exist.
Im hoping the next generation is all USB memory sticks with some strong DRM to stop piracy. I won't go into detail (ive planned everything) but i think it could be the best of both worlds, since you could save the dlc to the memory stick.