I will take part on the vote for disc based systems. I agree that digital games are best for handheld consoles only.
Mark me down for disc. While discless is great for making sure you always have the game, there are times I like to put my games up for sale when I'm done. With discless and digital only I'm kind stuck with the game. Wouldn't be a problem if the prices were low though. If I paid $30 or less for a digital game I wouldn't blink at all.
i prefer diskless, instant switching and no need for a cd in and out for every game... disc doesnt make sense when you have 150/90 connection. HDD space an issue? no because the disk requires the same space on hdd to be installed to play also, and MS is allowing for external HDDs.