The thing I like the most about Steam, and this outmatches everything else, is the regional price localization. 60 USD is not worth the same around the world, and Steam compensates for it.
A reasonable price has to be found by buying steam keys from [HumbleBundle/GreenManGaming/etc].
I don't play the latest anymore. I will wait a year or two and get it on sale. I get a patched, solid game with well known reviews and the community wiki already filled out(so valuable in many modern games!), for much cheaper AND with that much cheaper price I don't have to worry so much about being gouged because my digital download has to travel further...
But while your point is relevant to the marketing person, it is irrelevant to me as a consumer.
As per most humans of course, I never feel like I have enough. Like many, I have a mortgage and so am required to work until the day I die to keep a roof over my family's head. Not a glamourous roof, but ours.
So when I have friends overseas getting the same digital files as I am for less money, I feel ripped off.
For physical items in Australia you could argue the large distances for transport explain the cost/convenience difference.
But on the internet where the cost of information transport is negligible, a minimum 20% mark up is too blatant for the exact same convenience.