The issue here isn't with the core idea Redbox is going for, the problem is rights holders not allowing interesting uses of their media.

I'd really like to see something like Redbox pivot into something with a much bigger catalogue and much lower operating costs. The kiosks could provide USB/HDMI dongles where pretty much any media can be loaded and displayed on a TV for a consistent price. That way they could offer a much larger catalog, don't need to have someone physically move disks around, and the kiosks can be smaller since they don't need a bank of DVDs and Blurays. They could have a digital distribution platform to complement it, where you can stream everything instead of going to a kiosk. And you don't need any special equipment, pretty much everything has a USB or HDMI dongle.

Just think of going to a drive-thru and getting a dongle with your meal so you can watch a show with your fast food dinner. The only real logistics here is rebalancing the supply of these dongles, but that's much simpler than restocking DVDs/Blurays. These dongles can also be incredibly cheap, probably something like $1-2 at scale, and they could be reused dozens if not hundreds of times. They could even partner with libraries to digitize their library so patrons don't need to have a DVD/Bluray player to watch stuff.

But no, we can't have nice things. I'm pushing back by cancelling my streaming services and going back to ripping DVDs/Blurays. I have nearly finished digitizing my collection of disks, and I'm going to be buying and ripping physical media going forward. Screw this slow march toward "you will own nothing and be happy" nonsense.