What you have just said about paying for everything is, put simply, wrong. Using your example of CoD, Activision took the money grabbing attitude of a console developer and began charging when CoD started going downhill, ie. MW2 and BLOPs. All map packs and updates were 100% free for WaW and all CoD games before that point. The same holds true for most other PC games that aren't published by Activision or EA. You rerally think they would make one rule for those that bought the game physically, and those that bought it online?
Games are also getting more and more expensive. Gone are the days of ~£25 for a PC game, you are now looking at some costing as much as £40, and the average being around £35. For consoles, you are talking £50 for a game now, not £25-30.
I agree that the quality of games is decreasing, apart from Portal and Minecraft I can't think of a recent game that has made me go wow. Indie games have made me more excited and given me more enjoyment than the bigger titles have.
As for update times, mine goes something like this:
Click on game in Steam library, wait for game to download (never more than 1 hour because of my net speed). For you:
Install game from disc, ~20-30 mins
Find updates ~ 5 mins
for games which need sequential updates (the majority)
download all updates ~ at least an hour to download them all
apply them all ~15-20 mins
By the time you have finished, I'm already 40 minutes into the game, and that doesn't take extreme cases like CoH that I mentioned where I could have finished one of the campaigns before you have even launched the game.
what I am saying isn't just plucked from the air, I know countless people who are like you and prefer physical copies, I know countless who almost exclusively use Steam, and the same for people like me who will go for whichever gives the best price. There is a reason a lot of people I know have bought their games again through Steam, and it is for what I mentioned above - convenience and time. Having to spend a few days to install all games after a format as opposed to a few hours is worth it. To quote WoW goblins - time is money friend.
I am not bashing your opinion, I am simply adding balance by saying how you are making out online services like Steam to be the work of a devil, when in fact there are a lot more pros than cons to such services.
The main gripe people have is they don't feel like they own the game because it isn't in their, however you own it as much as you do if you have a physical copy. You have the liscence to use the software, the only difference is the installation media is the internet rather than a disc. You still get all manuals, all updates, all everything the same as you would with a physical copy, on the last point is all automated, so a lot quicker and easier