>What is the value that motivates people to buy DVDs that are a bootable install and/or live image of a free OS for $9.99 at Fry's?
We don't have Fry's here, but depending on your 'net connection it can be cheaper / more time effective to buy a physical version instead of a download. See also physical console games.
A couple of interesting (and non hypothetical!) things to ponder. What is the value that motivates people to buy DVDs that are a bootable install and/or live image of a free OS for $9.99 at Fry's? Similarly, what is the purchase calculus that someone does when they buy a paperback book in an airport bookstore which is a book they already own and have a perfectly readable copy at home?