Actually, their digital distribution model is quite nice. That hard copy you just bought? Plug the product key into your online Battle.Net account, and then you can download full installs of the product (Mac or PC) forever. It's quite nice for people who constantly lose their disks. I have all of their games activated on my account. I like being able to download and install a legal copy of D2 on a whim and go mess around for free on B.Net. Ditto for StarCraft, Warcraft 3, etc etc.
Sucks that they have issues like that today. Their servers are getting hammered right now though, of course.
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