Not saying it would be easy. The primary concept is that the actually delivery will reduce fraud and people get something TANGIBLE, REAL, to collect, hide, do whatever with. Load it into your palm, that's up to you.
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I think the biggest reason no one is doing this is because they don't have original content.
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There is definiately some business here for content providers to make a profit in the exclusive resale of content and distribution methods.
RE: Smut Spider - This still does not eliminate or reduce porn from the users drive and reduce stolen content distribution. I know of services that will collect "bookmarked" images and burn them on CD for you. There are many branches off this idea but the primary point is - give them something they can get off to OFF line and ON.
The cross-promotional ideas alone sets some high advantages.