Count me as “as many as possible via download”. I only buy physical discs if I have to, for the opposite reason that many of you cite:
I am ALWAYS losing discs, CD keys, etc. I can’t play several games I own anymore without cracks because I can’t find the CD key, despite owning a legit disc. I can’t play Battlefield 2 because my Disc 1 is missing (the others are right there in the box, of course).
I think I bought Bioshock, C&C3, and that’s it on physical media this year. Compare to Warhammer Online, several Steam games, etc.
All the games I’ve purchased this year have been through digital distribution, the vast majority of which were through Steam but one through Impulse. My preference would be to have them all under one platform, but Galactic Civilizations II isn’t going to be Steam while Stardock still operates as a company.