Honestly, we're already seeing major AAA publishers do digital only release. It will only get "worse" by the time these digital only consoles release. The vast majority of the industry will be digital purchases and we'll see more publishers do digital only releases. Alan Wake 2 is digital only and aside from the complaining when it was announced, I've seen nothing but excitement for the game and people quickly moved on.
I'm all digital and have been since Xbox Series launched (and I think a little at the end of Xbox One) and even on my Switch I'm all digital so it doesn't really bother me that much. Having said that, they could slap a detachable disc drive to the next gen console but by then the physical market will probably be around 10-20%, especially when Xbox has a higher digital ratio than PlayStation already.
For the mid-gen refresh it is probably too late to add a disc drive in but they could maybe add a USB drive attachment. But honestly I don't see the big deal with the mid-gen refresh...It's literally just an all digital Xbox Series X...There is barely any difference except in design...If you want a physical Xbox then the OG Xbox Series X...It's basically the same console, Lol.
It's no different to Sony having a PS5 and a all-digital PS5...Literally we been saying that Xbox should release an all digital Xbox Series X, Lol.