Despite the advances in storage, compression, broadband access, etc., I suspect we'll continue to see optical discs, or some physical form, produced and sold for quite some time.
To this day, most people still make a separation between their TV's and their computers. Despite the attempts by many companies to push the vision, we are still far away from one integrated device in the home. When people think of streaming or downloading video, they think of watching it on their computers, and their computers only. They think of getting a movie or TV show to watch on their TV as a separate process, and most people still have much bigger TV screens than they do computer screens.
Convergence may happen eventually. But it's not just a technological matter; it's changing people's attitudes and perceptions about which devices are for what. There's still a long way to go on that.