Well it's dead on consoles but it's not necessarily dead. We can't look to consoles anymore for advances, clearly their users are still stuck in their quaint 70s style of play where you put your physical item into your device hooked to one tv and play. Compare this to 6 year olds that play digital content on their multiple digital devices both in and out of the house, housewives that play digital content on their pc's, laptops and tablets, casuals who have embraced digital downloads, etc. That's where we have to look to fro the future, not the "hardcore" console gamers that are clearly stuck in the past.
So forget consoles and look to other devices, there is still hope of tablets, pc's and other digital playgrounds to advance to shared digital libraries. So while console owners are stuck playing their physical discs in front of their Predicta Continental TV's, the rest of us will have moved on to the future. Who knows though, maybe in a decade or so from now the "hardcore console gamer" will have caught up to casuals, kids and housewives. In the meantime let them insert their discs and be chained to their one device. It's primitive but clearly that's how they want it.