Let's say the regular PS5 is 500$ USD and the All-Digital PS5 is 400$, would you consider getting the all digital edition instead?

Yes.

Nah I still want my physical since the stores sometimes have better deals on games compared to digital.

As an example with FFVIIR. Because I pre-ordered it during E3 pre-order sale, I got it for $54.96 CAD at launch when the normal price is $80 CAD.

Nah, I'm just gonna wait until the normal version drops in price.

Nope. UK prices for games on PSN is expensive compared to retail. Sticking with disks.

Oh and the console will also double as a UHD player as well.

No. I have 4K Blu-ray discs, and I'd like to have the option to have physical games as well.

For 100$ less? Yeah sure! But that's minimun, anything less than $100 is a deal breaker here.
To me 100$ is the sweet spot for Discless vs Standard.

At 399 it would be tempting but I really like physical for gaming that I'd rather just pay the extra hundred dollars and get the one with the disc drive. It's a good option for a lot of people who've already gone digital-only though.

The way I'd see is the All-Digital PS5 is $400, would you consider getting the PS5 with a disc drive that gives you the option to play physical games and 4K Blu-rays for just $100 more??

So yes, I would gladly upgrade my PS5 to play physical games and disc based movies for just $100 more thank you :P

Difference is tempting, but no. I like to collect the games and also I can buy used cheaper and make the difference in time.