Let's take a look at both sides. From a business standpoint I can understand why Microsoft is pushing the upgrade download. They are cutting costs like a lot of companies are. We see this everywhere. This includes us as individuals. Economies are not in the greatest shape. Who here has not tightened the belt on their finances?
The cost of producing, warehousing, taking orders, picking orders, packaging, mailing/shipping, facilities/buildings, and all the employees to do so must be an astronomical cost, especially for a huge corporation like Microsoft. Don't forget all the returns when a customer rejects a product for any reason > Reverse the process above.
Although I sympathize with the OP and others, a lot of us didn't have the download speeds we are enjoying today. They are continually upgrading the infrastructure, especially within the last 5 years. Here in the United States anyway. I'm sure other developed countries are doing the same. Also keep in mind that routers and ethernet cards have come a long way. Therefore Microsoft, as a corporation, has saw fit to make a change.
I'm quite sure another factor MS considered, as other companies, governments, and individuals do, is to be sensitive about the environment. How much plastic, paper, energy, and any other items needed will be eliminated from an already polluted world?
On the other hand, companies like MS need to be sensitive to groups that do not have the luxury of high speed internet. Perhaps they should farm out upgrade media to another company to do so, but remember you'll have to pay the price. Will it be worth it instead of the time and data costs that it will take?
Perhaps someone else has another alternative.