Of course they knew the PSP would one day be pure digital distribution, hell, when i got my PSP 1000 I knew it was only a matter of time.
No one is copying anyone with this idea, its not new, its just the natural evolution. Besides, we cant keep wasting earths resources making CD's and what not.
Digital contents is just the next logical step.
What we do need is a new retail shopping model though. I work a part time hoby job in a small games store, and full digital distribution will potentially see an end to these stores.
Id suggest digital distribution retail model be formed, allowing customer to take display cases to the counter, which they can then have the game uploaded to their large storage medium .
We need a way ro physically shop, for pure digital content!