before i would have agreed that physical is and will always be better. but things have changed. it simply doesnt make sense anymore from any perspective to keep producing physical games.
First we have the industry standpoint. all other forms of media have gone digital. People download music, movies, books, documents, and read online articles rather than getting newspapers delivered anymore. Why should video games be held to a higher standard?
Then there is the convenience standpoint. Its simply more convenient to have all of your games ready to go from the moment you turn on your gaming console. having to get up and insert different game discs every time you want to play a different game can get tedious. and if its a portable console, you have to carry around a case to hold your other games.
and as for reselling - i really couldnt care less. i havent resold a game in years. by the time i even consider reselling, the game has already significantly dropped in value and not worth it anyways.