Physical is usually cheaper than digital with consoles, so physical it is for me.
As for your plans I would suggest a rental program(gamefly in the US) for those games you would normally buy then trade, its can often be cheaper than buying/reselling if you play a lot of games.
Getting an XBOX One for me is like being in a bad relationship but staying together because we have kids. XBone we have 20000+ achievement points, 2+ years of XBL Gold and 20000+ MS points. I think its best we stay together if only for the MS points.
Nintendo Treehouse is what happens when a publisher is confident and proud of its games and doesn't need to show CGI lies for five minutes.
-Jim Sterling