I don't care about physical anymore. Except for games that I might for some reason have a personal connection to and want some keepsake.
I care about the games themselves, and they are the same no matter if they come on a disk or a download.
"But if Steam shuts down, you'll lose all your games!"
So what?
Those that I want to play again after that scenario, I'll simply buy again (at a MUCH lower price by then most likely).
Some extra cash for developers I don't mind supporting.
I don't have this false sense of ownership for digital goods. And make no mistake, a game on a disk is still very much digital. In contrast to truly physical goods, digital media has unlimited copies. You spend money to keep developers developing, not because disks are expensive to make. Bytes are bytes, how they end up on your device is irrelevant once they are there.
If you bought a disk or if you made a backup of a drive that has game X installed - all the same.
The only two advantages I see in disks is that
A) installations are faster - which only matters for those extremely large games (which I rarely play, I'm mostly into indie games).
B) you can use them if you have no internet - which didn't happen to me in the last 15 years for more than a few hours, maybe a day or two and I'm not planning to move to countries with messed up infrastructure.
I hope this changes soon, cause it is unreasonable to expect same price for digital freshly released games, when they don't have to manufacture any cases and discs. More often than not I can get new games on release cheaper in physical form than the standard 69.99 digital price.
You have to let go of that idea that cases and discs are expensive. They are not.
If you go to pages like
https://www.discmakers.com or similar ones, you can see that even a typical Bluray in a wraparound, etc. is below 3$ when ordering 1000. You can bet that big publishers get much better deals than that.
Sure, collectors editions are different, but those really fall in the keepsake category I mentioned initially.