No, it's not necessarily cheaper- but it is more convenient. I've re-purchased games that I still have on DVD because of that reason. In fact, it seems that the price is not the leading motivator from what he was saying, but just one of many. Also, if you look for sales, there's no reason to pay that price. When I purchased Fallout 3 game of the year edition, I got it for $25. And as for Oblivion, I purchased the past two elder scrolls games plus the DLC for $19.95. Steam will always have the advantage on agility in pricing, because they can more easily mark things down for a day or two than the retail channel.