Well, here's the thing for me, it's kinda a mixed bag. So, what that means is that basically, my collection is split right down the middle in terms of disc and digital.

1. I don't have to worry about getting banned. Just don't do anything dumb. And if you are going to break the rules, don't go running your mouth about it, and get caught, mr. let's get 32 years worth of PS+ then tell everyone. If it were me, I wouldn't have said a damn word to anyone and stopped after about 2 years, tops.

2. Look.. Sales. Sales Sales Sales. I cannot resist Max Payne 3 for 5 dollars. I was going to spend 60 when it came out, and to be honest, I would have been disappointed. All you do is shoot. It's like a 3rd person Call of Duty. No variation, like Uncharted. Just... shoot, all the time. And then, Red Dead Redemption, Ni No Kuni, Dragon Age Origins, L.A. Noire. I paid 5 dollars for all those games! Why the hell not buy them.

3. If I'm going to buy more for a game, it better come with a disc. Look. I'm not paying 60 dollars for a game that comes with no case, no disc, and no manual, or anything other than a digital download. When it's under 20 bucks, I can understand. I'm saving money by doing digital. And, I'm saving more than 5 bucks.

4. I never, ever, EVER sell my games. EVER! It's mine, I want it, I'm keeping it. If I didn't want the game, I wouldn't have bought it, unless it was on a big enough mark down sale to justify getting it no matter what. Selling games to me has 0 appeal to me. I've been like this since my PS2 collection was stolen. I'm never trading, or selling any game I own. On any system.

5. Owning digital reduces ware on your Bluray disc drive. This is the single most reason why I would consider downloading. Tekken Tag Tournament 2 is my most played game on PS3. When my bluray disc drive first started giving me problems, the very next thing i did was buy digital TTT2. It cost about 35 bucks. Yes, I bought TTT2 on release day, on disc, for 60, but, I needed a digital version to guarantee I would always be able to play it.

No need for a disc, and take it over a friend's, because ALL of my friends have TTT2, without exception. We -ALL- play it. One of them even bought digital last month because his bluray drive started giving him problems too. We can't not have Tekken. That is the one game we must be guaranteed to play... Another friend, who went from 360, to PS4, got himself his first PS3 to have something to play because of no games on PS4. First game he bought on PS3? TTT2.

Reason why we all bring our PS3's over each others' houses is for another discussion, but it brings me to my next point.

6. Digital only is NOT stopping me from playing games over my friends'. I'm the only one of all of us with Soul Calibur II HD Online. We must have played that game for well over 2 hours. I had no idea I was going to have competent opponents in that game, and no idea my friends were that fond of SCII, as I didn't know most of them back in 2003 when the game first came out.

Like I said, we all bring our PS3s along with us. We almost always play fighters. Extremely rare that we play something that isn't. I have every game they have, except Super Street Fighter IV (no one wants to update to Ultra anyway) and Dead or Alive 5: Ultimate.

In fact, I have the most, so I basically always bring my PS3 along for some variety, or else all we'd ever play is Tekken Tag Tournament 2, and Power Stone 2, and maybe Tekken 5: DRO. I just can't play as much Tekken as they do, though.

So, I guess that's it for me. The shorthand of this post...

Digital games are often on sale for as much as 95% of the original release price, and I don't buy games unless I intend to play them. I don't buy 3, or 4 games at once, and have a back-log because I don't have time. I usually forget about the game, and once so many months have past, I'm over it, until I see a sale price that's ridiculously low.

My friends and I bring our PS3s along with us, to whomever's house we go to, so digital is preferred.

Lastly, digital games don't hurt the disc drive. The HDD is much easier to replace, IF it fails. If I'm paying full price for a game, it must be digital. Only go digital if the price is right.

You don't know what Sony will do to PSN on the ps3 in 10 or 20 years. The service will be turned off for it at some point. We can't use our DL games on the PS4. So they can't be moved already. If we can't sign into the PSN account, we can't move them to a new HDD to authtencate. That means if your HDD fails, you lose your game(s). The only option at that point will be people who fully hack the OS to allow all games, save data, patches, and DLC to be moved freely to HDD's.

Bunch of console luddites in this thread, thank god physical will die like Sam Goodie and other vintage bullshit.

On the PS3 there is a pretty big difference between the Digital Download copies of Game X vs the Disc copy of Games X. The vast majority of PS3 games have uncompressed audio tracks on the Disc while the Digital Download copy only offers lossy Dolby Digital 5.1 audio. You can't even get Dolby HD, DTS HD or DTS Master HD via digital download. No thank you!
For someone like me that has invested a lot of money in to get the most out of High Def audio sources means that I will never get the digital copy unless it too offers the uncompressed/lossless audio. But that will usually add about 10-30GB of data on the game download.

you are mixing up two things here... collectors and gamers... sure there are a few people that do that and good for them... but lets be real most people buy their games to play them and then either store them on shelves collecting dust  or sell them at gamestop for peanuts....

good for you if you collect games and make money out of it... me peronally when I want to make money I invest it on financial products on the stock market or other similar markets.... I have neither the time, the will, the room, or the patience to build a collection of any sort.... if I do collect something it is more for a decorative purpose than a long term investment.... yeah maybe one day if I really have enough money I will do that with cars or wines... even though I'd much rahter drink the good wine than collect it lol....

anyway.... outside of collecting purposes which is fine for a regular user, physical has not many advantages over DD if you don't plan on doing any profit from that investment and consider it a pure sunk cost on entertainement like I do....

Well being able to sell the games is a nice boon, as well as being able to buy the game used, and of course having the physical collection has its great appeal.

All of the above, you can stack them up, take them round to friends and you've got it forever. The main one though is hard drive space, my PS4 stock is already getting full after six months and the max hardrive you can put in is a mere 1.5TB. That could be full by 2015!

I really doubt PSN gets turned off in the next decade or two. 

Playstation is a huge brand. Even if Sony itself shuts down, someone is going to pick up the SCE department and continue working on games. 

PS1 digital games are available for me to play on my PS3 or Vita. Who's to say the PS5 or PS6 won't be able to play PS3 games? Or stream them?

Steam has been going strong for over a decade, and I REALLY doubt they shut down anytime soon. Their digital model is causing them to grow, in fact. 

They aren't mine.

They will never be mine the way that my old beloved N64 or Gameboy cartridges are.

I love having a physical collection to look at, but I still buy a few digital titles, mostly indies.