It's not a question of "this or that". Every medium has its own advantages. Discs are indeed more durable (that's why they are sending them into space and not HDDs). They are also a lot cheaper. Think about it, that's 300 GB on just a piece of plastic. For an HDD you need all kinds of stuff. Such a disc should cost a few bucks in production and will get down to a few cents rather quickly. Try finding an HDD for that price. The advantages of HDDs have also been mentioned in this thread. But really, the two can coexist just fine. There's no need to argue about what's better.
Then again, this is a video games forum. I guess everything here ends up being a flame war, lol. ;)