No it's not, despite what some people glossing for the idea of an all-digital future want you to believe.
An all-digital future would be a VERY bad thing.
I can do a lot more with a digital copy I bought from steam than a physical copy I bought for PS4. Digital isn't the issue, DRM is. I think it's kinda ridiculous how physical discs are somehow lauded as gaming Jesus while they're full with DRM and already are just as tightly controlled as their digital counterparts.
The protest shouldn't be against digital but against closed platforms.
True, but the issue is that pretty much most digital platforms are DRM systems, to begin with. GoG is a model I fully embrace, but let's be honest, it's one that most publishers will not pursue, so it will always be a niche player in the industry.
Physical with DRM is absolutely an issue, and lately, they became downright cumbersome to use, but I think when most people say physical they refer to the old pre-7th generation distribution models. I think the Switch cartridges are still (mostly) there, but it's only a matter of time until they will go the way of the Dodo.
Still, gaming (as an industry) will get through this, and there will always be an opportunity in it that some will try to exploit, so who knows, maybe one day we will get the best of both worlds