I was done with this, as Savyg and I were done beating our dead horses, but I'll bite one last time.
Plus I'm bored at work with no work flow and most everyone is on vacation. The death of retail isn't my problem with DLC.
The problem with the free DLC model is that you don't actually know for sure in advance firstly whether you will get any DLC, and if you do, what it will be....snip... build some form of brand/loyalty for future games..snip...do consumers look to the publishers of the game, the developers, or the intellectual property?
That problem is true for paid DLC games as well. If the DLC's are planned and in a stage of public advertisement, then why weren't they just included in the game in the first place, other than to dig a few extra dollars from the community? Also, some DLC was promised (Left 4 Dead) but it's not being released seperately (as a sequel in that case).
As for brand loyalty, I'm less likely to buy a game that I know will release pointless DLC for above it's worth (Oblivion), and much more likely to buy a game that will receieve free DLC because the developers love the game (X3).
As far as who to look to, the list should go: 1. Developer (who made the game, and usually makes games of a similar caliber), 2. Publisher (who published the game, but can pull many strings, but usually produce a similar caliber of game), and then 3. IP owner, who is usually one of the former anyway. Just because it's a Star Wars game doesn't mean it's a good game if you took away the lore.
Even getting past that though, paid for DLC still has a big advantage, because only the people prepared to pay $x for additional content will pay it. In effect meaning that those who are happy with the out of box experience will get to pay a lower amount, and those who want all the flashy extras which are worth more to them will pay a higher price for all the extras. It also benefits the developers - if there is little demand for additional content for example, they can determine that at an early stage and halt further development, as opposed to spending time on a whole expansion pack for little actual benefit. The charge for the DLC allows them to clearly evaluate just what their customers view the DLC as being worth, compared to free content which wouldn't have an easily quantifiable effect.
This sounds like a PR spin for DLC. DLC has huge advantages to the gaming companies, not to the players with what you've given as examples. The advantage to the players is that you get new content released faster than a large expansion could be completed. Those happy with the out of the box experience didn't save any money, they paid full price for the game, but only have part of what's available. Those that want the flashy DLC, have just spent $100 or so on a game. If it was originally released with all of the DLC in a pack for $100, no one would buy it. It's genious as far as our market system goes, but for the consumer, we're getting the short end of the stick.
For example, Fallout 3, which as Savyg said, has quality DLC released. The original game costs about $50. There are 4 DLC's released, and one more on the way I believe (Operation: Anchorage, The Pitt, Broken Steel, Point Lookout, and Mothership Zeta). Each DLC costs about $10. Now, take that $50 game and compare it to the $50 of DLC. You get much more for your money for the game. In a different comparison, take that $50 DLC, and compare it to the $30 expansion that you could have had, such as Shivering Isles for oblivion, the same developer as Fallout 3. You still get much more content and game time for your money's worth.
I'm not saying DLC is evil or bad, I'm saying that it's not worth the price it's currently being charged for. Obviously, everyone would love all free DLC. I'm not asking for that either. I'm saying that the problem is that too many people are willing to overpay for breadcrumbs. Why pay Ed Hardy prices for WalMart clothes?
It's also good that it makes more money for the developers - firstly, with an online model, a greater share of revenues goes to developers rather than being lost on non-value adding areas such as retail/distribution. This means the developers can afford to spend more money on games, making more games/games of better quality. With the competition out there in the gaming market, it also means that game companies aren't going to be able to realise ridiculous profits from the DLC model, because if they make loads of money that will encourage other companies to do the same, for a lower price. This means that the prices will fall, or alternatively the quality of games/their DLC will rise, as game companies compete for our money.
This arguement is slightly flawed. The idea of it is right though. Online distribution is fine, and is where the market is going. It offers many advantages and saves a lot of money. My problem with it is that a direct download game (which costs much less) is the same price as a game I go buy at the store. We don't get the savings passed down to us. Also, even though competition should drive the prices down, with very few exceptions, most PC games are $50, most expansions are $30, regardless of who developed, published, advertised, or whatever for them. DLC will have a basic understood set price for what is included and it will be just as standard as everything else is.
Quality will rise regardless, and there will always be bombs, just like released games and expansions.
I'm also not fond of game companies releasing unfinished or faulty products at retail, and then just using (free) DLC to add the rest. With a paid DLC model hopefully there would be more pressure to make sure a game is released in a finished state first.
I'm not a fan of unfinished games either, but something much worse than free updates adding in these things later is paid updates adding in these things later. With a paid DLC model, companies will now plan things that could be added in to the finished game (Spore), but are instead held to make paid DLC since they know people will buy anything.
Not all DLC is bad, or original content held over. I just believe it's not worth the current price. I bought all the DLC for Oblivion in one go for $10 (The Knights of the Nine retail disc), and the newest castle DLC was free for it's first week. That price is much more reasonable.
In conclusion, since I wrote a mini-novel, I want my money's worth of content out of DLC. I don't mind downloading it, I don't mind waiting awhile for a big quality expansion, and I don't mind getting small updates quicker as long as the prices are are reasonable and comparitively fair. I believe that many people are all over the bandwagon because it's easy to dismiss being ripped out of $50 dollars on a few quests because it's spread out over $10 payments and a few months. Who cares about $10 dollars? I spend more at McDonalds in one trip. If all of that shiny new DLC was put in a box for $50, you'd laugh at it, and keep walking. But, it's just $10 at a time, so it's no big deal.