Good point Mike - but I think that in this rental "model" it will be different. I know that DVDs are cheaper to buy so the overhead is much less, but people like remembering "old favorites" with movies, music and video games. Heck - my kids still like Tony Hawk Pro Skater (the original) every now and again because it's more raw and less "polished" than some of the newer versions. They also go back and play Crash Bandicoot cuz it's - well, fun!
I think that this will take off - there's been talk of it for awhile now (ever since NetFlix took off) and I think it will get a big following. I know quite a few folks were renting video games @ our local Blockbuster last time we popped in - and this NO late fees, NO limited return date thing is a real perk. For people (like me) who collect late fees @ traditional rental places, these rental-by-net deals are a real deal!