True, but the issue is that pretty much most digital platforms are DRM systems, to begin with. GoG is a model I fully embrace, but let's be honest, it's one that most publishers will not pursue, so it will always be a niche player in the industry.
Physical with DRM is absolutely an issue, and lately, they became downright cumbersome to use, but I think when most people say physical they refer to the old pre-7th generation distribution models. I think the Switch cartridges are still (mostly) there, but it's only a matter of time until they will go the way of the Dodo.
Still, gaming (as an industry) will get through this, and there will always be an opportunity in it that some will try to exploit, so who knows, maybe one day we will get the best of both worlds
Publishers will further push and get away with on-disc DLC as well since, you know, there will no longer be any discs. So they can get away with selling you stuff already in the game and locked in the code.
One of the primary reasons they WANT an all-digital future is so they'll no longer have to lie and cover it up.