A) what problems are you referring to?
B) DRM free already solves a lot of it for digital titles. Sony, Microsoft, etc are entirely uninterested in that. They wouldn't be able to pull them from your library if so.
C) Removing physical media completely kills a used market. Dead Space is $20 on disc, $70 on the Sony store. Sony doesn't want you to think about that though. Sharing becomes nearly impossible. Ironic, considering Sony's stance for the PS4
The biggest thing is simply this: physical media offers protections from corporate abuse/greed. If digital media wasn't abused by corporations, we wouldn't have this issue. Physical media done correctly makes most of those abuses impossible. And, unfortunately, we can't trust closed source corporations not to abuse us when money can be made. So without a forcing function through legislation, physical media is that forcing function/protection.
