A very valid point - why even bother with physical media when our needs are satisfied by the internet? Although I suppose the unfortunate few who don't have massively speedy broadband connections will still want to buy their games and linux distros. But, then again, who of that group really gives a darn whether their ordered CDs are normal size?
Unless the discs are re-recordable and extremely high density, they're wastes of material. It's pretty silly to take plastic and metal and burn tiny holes with a laser and ship the disc to me, whereupon I just copy the data off it and throw it in the trash. I could have just used the Internet.