does users still download software

In the last couple of weeks i am facing the question does users still download software from the the web or they are just register to services?
What is the chance for a "pc/mac client" start ups to success? and don't give me the ICQ/skype example because both of them was a few years ago and both of them are true viral ("your friend has to have skype in order to use it").
A lot happen since the 90's when everyone offered a free software to download and everyone downloaded and installed and got all kind of viruses and spyware in the process.
Since then we got web 2.0 with online apps and there is no need to download does once pc clients.
The assumption is that it's easier to the users to register to a service then download.
But is it true? (i have no idea)
All i know that in the last couple of years not a lot of downloaded software made it (stumbleupon did it, but who else?)
So if you consider a start up that need a pc/mac client maybe you need to think how you can over come it.

Navot