In the end it's all physical, whether it's stored on a HDD, SSD or cloud server. The cloud can fail just as any physical copy. So you either make your own copies of physical or digital games or rely on the cloud infrastructure to keep the data indefinitely.
It's actually two questions "Which is better for game preservation/ownership?"
For ownership it's physical preferred. You don't own shit with a digital license. However newer physical games are often incomplete or merely an installer, thus your physical 'copy' is worthless without the server anyway. (Worthless for preservation, you can still sell it of course)
For preservation you either store your physical games carefully or keep making digital copies of your GoG collection every 10 years.
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