I prefer physical when given option, but most publishers have limited physical releases here and they tend to be more expensive than digital because they are often imported. When I went to another country it was funny seeing physical games, specially Nintendo games, being sold 20-30% less expensive in physical media, when here they tend to be 15-25% MORE expensive than the digital versions
I think for most western games digital is fine because they tend to get deep discounts from time to time. You can get 2-3 year old games for 20% of their launch price, at this point there is no benefit from physical. I realized though Japanese games tend to keep their value for longer, except Capcom I think. Square sells their games for full price for a long time. In this case I prefer physical, because if I don't like I can sell it. Most of my 3DS collection was second-hand games, without physical resellers I would never played Fire Emblem Awakening for example
I hope physical still there for a while, there are some games I'd like to buy second hand in a few years when they become less expensive, specially some Switch first parties that imo are not worth 60 USD, but I could get an used copy for maybe 30 USD