When you have to install the game anyway (as with playstation and xbox) I see no point with physical versions of the game (note that I live in a country without download caps on internet and I have a 250/250 connection).
But when you can play directly off the cartrige/disc I prefer physical games.
I agree. Two of the best things about physical games (cool manuals and most or the entirety of the game on the physical media) are all but extinct now. That just leaves the used games market and sharing with your friends as the two big positives left. With Switch, I get most of my games physically. After all, most of the game is on the cartridge. Plus Switch storage is nowhere near as cheap per GB as other consoles because it only accepts microSD cards.
With PS4, the vast majority of my games are digital. That means both games I buy outright, and the Instant Library games. My 1 TB internal HDD and 2 TB external HDD suffice for files. I've still got a lot of space left. If it gets close to getting full, I'll delete games that I don't really play.
Something that I have failed to mention before that others have is internet connection speeds. Those probably won't be enough to have physical media still thrive, but they are a concern. Plenty of people and countries have internet too slow to make game downloads convenient and quick.
Lifetime Sales Predictions
Switch: 144 million (was 73, then 96, then 113 million, then 125 million)
PS5: 105 million Xbox Series S/X: 60 million
PS4: 120 mil (was 100 then 130 million, then 122 million) Xbox One: 51 mil (was 50 then 55 mil)
3DS: 75.5 mil (was 73, then 77 million)
"Let go your earthly tether, enter the void, empty and become wind." - Guru Laghima