This is bad news for folks who like the ready-access to a large variety of titles from their local Blockbuster or other video stores. That option was "almost dead" already; this can only help push it closer to "totally dead".
And given how ubiquitous these kiosks are getting, I have to wonder how much this will adversely impact the online services, given that so many J6Ps rely on those services for recent films on BD. I don't think they could legitimately survive almost solely reliant on folks renting older "catalog" titles from them.