Gamefly and USPS stuck in legal battle

Gamefly, the online video game rental service, is in a legal battle with United States Postal Service. Gamefly is claiming that there 1% of broken discs that come through the mail is due to the mishandling by the U.S. Postal Service. They claim that they handle Netflix and Blockbuster rentals by hand and with more care. USPS claims that Gamefly uses poor packaging. The legal battle ensues. Maybe this is a sign to leave the disc behind and use some sort of flash storage. One that you plug into your computer and it formats and puts a new game on to the device when connected through a secure server. This device would work through usb and could hold as much memory as you wanted to.