Ah, I remember popping down to WH Smiths and buying UFO-Enemy Unknown for £44.99... happy days. If Steam had been around at the time, instead of being the stuff of a mad man's dream, they would probably have flogged it for £55 (on special offer)
Trolling and nostalgia aside, these days I'm purely an on-line buyer and haven't bought a PC game in a shop for at least 5 or 6 years. I'm not a huge fan of Steam to be honest, but will use it for old or niche titles that have only a gig or two of downloading to endure (and are cheap).
Youngsters are probably more than happy to go down the digital only route, but I'm an old git in his mid 30's and like to have something tangible to show for my cash. If others feel this way then hopefully digital only distribution hasn't won yet.