Could the Mac App Store eliminate boxed software inventory?

I agree with Lynn, but @Josh
1) You're probably younger than me;
2) Buying software online (pre-App Store) usually gave you a non-cut down version with an option to have a boxed version; buying from Amazon was just like buying from a shop - except you didn't get to see the quality of the packaging, a sign of how well financed a company is.
3) You're missing the point - Apple Retail Stores without software reinforce the MS FUD that there's no software for Macs - where would it be?

What about those of us who use our macs for business? I understood that mac store purchases were only for personal use!

Not until they fix it. I have iPhoto '09 and the Mac App Store won't let me buy iPhoto '11 because it thinks I already have it installed. Same with GarageBand, but not iMovie for some reason. There's a huge thread on the Apple Support forum of people saying the same thing.

No optical drives, smaller boxes & less shelf space saves money. All new software will be on those little SD Cards.

I can see how the model will work for Apple, although doesn't the Final Cut Pro suite run to several gigabytes? For some people, downloads of that size are not practical and being able to go to your local Apple store to buy the DVD would still be preferable.

Same would apply to certain Adobe software suites, although customers could get a DVD shipped direct from Adobe.

If they are thinking of getting rid of boxes, how about those ridiculous boxes in which they sell AppleCare? If I buy a support agreement, why do I have to walk out of the store with a box? Come to think of it, why do I have to pay for the box to be shipped to me if I buy AppleCare online. The whole concepts is crazy. I'm sure the box is stuffed with legal twaddle but a URL would do nicely. It's ironic that that they email me the receipt (even for an in-store purchase), why not just email me Applecare credentials.

I hate iTunes. I can’t buy anything I want. Everything that’s good is not available in the Canada store.

The problem with the App Store is that it is tied to your iTunes account, and iTunes is VERY country specific. For most people, that won't be a problem, but there is a sizable number of expats in this interconnected world who live in countries where the iTunes language is not English.

That means the only way to buy English language apps from Apple is to go to an Apple Retail Store in your home country on the few times you visit. Take that away, and where are we to get our software, other than from Amazon, where you can't pick up the box and look at the info?

I have used the App store and it was easy, but only for free or cheap utility software: anything over $20 and I want a hard copy.

Don't forget when iWork and iLife '05 got smaller boxes?
Then Leopard, iWork and iLife '06 got even smaller boxes.
Snow Leopard boxes couldn't get any smaller so they got slimmer.
The only way Lion could get smaller is if it was on a thumb drive.

I worry this will make the Apple Retail Stores a less compelling place to visit. At the moment, they have everything you can get for your Apple Mac computer: hardware, software, peripherals. Lose the software and you give up your USP.