I know! Some of the cover arts is just amazing *.*

You figuratively own the game when you have the disc/cart. You don't figuratively own it when you stream it. Imagine it as if we were talking about food. With physical, you have a plate of food at your own dinner table for which you can eat when and however you choose. With streaming, someone is standing in front of you with the plate of food you bought, spoon feeding you as THEY see fit. As long as they feel willing to feed you, you will be fed. 

Do you want them to have the control over your purchase? Do you feel comfortable enough to give them that trust? I personally don't. I want to have the disc so I can have that piece of mind. With a disc, YOU have total control over your purchase and as long as you take care of it, it will always be there in perfect working order for the rest of your natural life.

I think the issue is different with music and games, as music files can be played on all kinds of devices. Certain games are created for a platform and once that platform is gone you might not get to play that game again unless they port it to the console you're using now. I have tons of digital games on ps3, take specifically Super Stardust HD. I can't play that on my ps4. The cool thing about old consoles before all the digital stuff started happening. I can take my old Nintendo, Genesis, Playstation, etc and still play those games today. If for whatever reason one of the systems eventually breaks down I should be able to find another one online and I still have my games collection to play. If you're all digital once your system dies of old age, it's over. Eventually my ps3 is gonna die, and who knows how long Sony will have these games to download.

Another thing with digital is we end up having to pay for the same game over and over again as a new platform comes out. All the old games on Nintendo/Sony platforms on their online store. We might have bought these games years ago, but play them again on a new console(without backwards compatability) we have to buy them again even though we have them on physical disc/cartridge.

Primary deciding factor for me, between retail vs digital -

Retail - I buy the physical copy, the game is mine, will work on any console anywhere that functions properly.

Digital - Someone else on the other end of my connection can flip a switch, and the game no longer works. DRM is rather annoying when it requires an internet connection to verify your copy of the game, when your router is acting up, the online services are down, etc. Having to deal with this issue on Rock Band for 360 lately and it's really bugging me.

You can play your downloaded Wii Games on your Wii U just fine. Same thing with DSi:3DS. Games that you bought for Wii that get released for the Wii U VC require a small upgrade fee, but you can otherwise skip it and continue to play your games in Wii mode. I can't speak for the other consoles.

I don't see why you think this is only a digital problem. Can you take PS360 discs and play them on the PS4/X1? Or a disc from any console and play it on another console two generations later?

I meant own the game digitally like a download, not stream.

And yeah, I'm not that paranoid. I've had digital games with Steam for years and it's been fine, along with apps/music from both Google and Apple. I still have access to all my purchases. I also have 2 Vitas, and since most of my collection is digital on those, I can have both with the same games at the same time.

So you basically said I am correct. There is a chance that these companies will go out of business, or even get out of the console business, and we will not be able to download our purchases again. Especially in a case where, yes, if I have them all downloaded I am safe forever. But what if my hard drive dies, or I didn't have enough space to keep them all at the same time. No matter what anybody believes, the fact is that your physical copy will last longer than your digital as long as you take care of it. Also don't be confused, I am 100% for people buying digital games. It will just make my physical copy that much more rare, and that much more valuable :)

This really isn't a debate for me. Getting the game physically is always my first choice. Getting it digitally is usually reserved for games that I don't feel are worth $60, and want to get on the cheap (usually via steam sale).

What if your disc breaks?

You are dealing with the far future and lots of uncertainty. Anything can happen. For all you know, an angry person could sue you and have your assets (including video games) taken away. You can't deal with such incertainties.

And no, your physical games will probably not be worth that much more, honestly. Maybe some of the lesser known titles, but if you try to sell a CoD or Battlefield game twenty years down the road for a good profit just because it is physical, I doubt it goes through. Anyway, I'll just take my straight-up discount on digital titles through sales. 

If both are cared for equally, and the drive in question isn't SSD,  the disc should outlive the HDD quite readily.  Even still, an SSD will fail long before a disc, provided they're both cared for equally.  I usually keep all my discs either in their jewel cases, or I have 2 128-disc cases with felt lined interiors so that they're cleaned everytime I put them in and take them out.