I hope I got the gist of your text, since I've been thinking about these things too. Sorry i didn't read all the text, but e.g. this caught my attention:
anjohl: The problem I have realized exists with digital distribution is that there is no stock level, and as such, there is no market demands pushing a price lower. Additionally, without the ability to resell titles (A glaring omission I doubt will ever be rectified due to publishers largely controlling DD sites) the cost of a game cannot be subsidized. In short, the DD axiom of “one CD key for each player” is the publishers ideal. In my opinion, the convenience of DD is offset by this major disadvantage.
For one thing, in retail times I many times impulse bought lots of PC games, out of the fear that if I don't buy that only copy on that shelf NOW, it could be I never get another chance to get it. And frankly, quite often that seemed to be the case, I have or at least had lots of the (also rarer) games that I see people here wishing to reappear and which are hard to come by, from Blade Runner to Final Fantasy 7-8 PC to Neverhood to System Shock 2 to The Reap to... you name it.
Anyway, digital systems take that stress out. If the game is offered digitally now, it is very probable I can buy it also later, and probably even cheaper. Hence, especially with DRM-games, I hold of my purchases until I'm really going to play the games.
About the lack of pressure to lower the price of games: while it is true there are no need for actual clearance sales now, as was and is the case with retail games, the digital distribution has opened the gates for soooo many more games than retail ever could, that the wealth of games alone pushes the prices down, even those of new games. Think of the flood of indie games, for example. If people use their time to play some $4 indie game on IPad, instead of buying an EA AAA title to their console or PC, that puts pressure to lower the price of the AAA titles as well.
Also, as the old games don't disappear from the digital shelves, they have to enter some lower price categories so that they got noticed at all. Or most probably, they will be sold only through crazy 80% discount sales.
In retail times, EA Ubisoft etc. were the kings because they had the retail connections, and without them you couldn't get your game sold, period (shareware was still very niche market, most copies of Doom were probably sold from retail shelves, not online). Nowadays these big old companies are starting to lose their power at least on PC side because now practically anyone can try to sell his game through a web site, or the likes of Steam or GOG.
As for the second-hand games dropping prices, I still reiterate that taking the possibility away for them will have to lower the prices of new games too, period. I feel that has pretty much happened on PC side already, you see completely new entry price categories for "lesser games" (20€ and less), while in the past all games that appeared on retail shelves seemed to cost the same 50€ in the beginning, even if it was some simple puzzle or electronic pinball game.
So from a consumer point of view, I wouldn't be too worried about the prices, we vote with our wallets. I feel nowadays there are far more options for cheap games than in the past, retail times.
I'm sure many (big) publishers are bitching that the game market is saturated with too much competition now. Gee, tough. If you can't take the heat etc., <insert a Robocop quote here>.