I think it's mostly a matter of principle. Selling you a card/cartridge implies that they're selling you the actual game data. So, when it is actually just a code, no different from a few numbers on a piece of paper, it seems kinda scammy.
Personally, I used to like to buy physical so that I could resell games when I was done with them. For a long time, I took pride in playing lots of games and spending very little money (mostly just Ebay fees) buy buying used games outside of the launch window and reselling within a few months.
Nowadays though, I have systems in different places, my son likes to keep games, and I otherwise just don't care much about reselling. So, digital is more convenient. So, I just don't care about having the game on a piece of plastic anymore.
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