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I downloaded Bioshock and that was six or seven gigabytes. And my internet isn't all that fast; I just let it download over a night or two.
I think big downloads are certainly feasible. It may bug people that they buy the game and can't play it RIGHT AWAY, which might put off twitchy adrenaline junkie gamers. But most normal people would be fine with it.
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I'm not to sure if many people are prepared to actually wait 2 days for a game they also paid for. I mean, if you buy it in a store you take it home and pop it in right away.
The games on Steam aren't all that big YET. But when I downloaded L4D and TF2 I know I was getting a bit annoyed at having to wait for it.