Interesting argument. I agree with Jaffe in that Gamestop is taking a pretty big cut and they should get a piece of that. These aren't like cars, and the ridiculous amount of time they have to put into games these days should be repaid.
On the other hand, games should be priced at least $10 less than they are now. Less priced originally=less incentive to buy used. Really, that isn't rocket science.
I also believe that we should see some more independent retailers, like the music industry. If there are more distributors, and the smaller ones take less of a cut, then people should move to them and then Sony, Microsoft, EA, Ativision, etc will have to lower their prices and developers will get a better cut.
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