Hell no.
It's doomed to fail.
Making digital distribution the only means of buying games is the dumbest idea ever. Valve, the company that made digital distribution what it is today in the gaming world, still release hard copies of their games, even the ones for PC.
Without hard copies of games, retailers aren't going to be making any cash, and who is the biggest seller of consoles? that's right, games retailers. There are multiple retailers that are refusing to sell PSPGo, as they will not make any money at all from games sales.
With lack of support from retailers, the PSPGo will not succeed. Even if retailers sell prepaid digital money cards, the fact is that would eliminate the point of digital distributed games. Most people who want downloaded games are usually going to pay by credit/debit card.
There's also the games collectors among us. Many of us have that little niggling feeling in the back of our minds that make us want our games on some physical format, boxed with artwork and manual and such, and the PSPGo gets rid of that part of the market, which sad to say, is a hell of a lot of people, myself included.