I prefer to buy physical for the sense of ownership and to have something to sell on once I am done with the game (or console) but I do admit that as someone who plays lots of different games at any one time that the convenience of having a digital game is very appealing, doing away with the need to constantly swap discs. In that sense, I actually like it when a game I own on disc comes to GamePass (on Xbox Series X) or PSN+ (on PS5) so I can play it without the disc. Case in point, I bought F1 2021 for my Xbox Series X last year and now it is on GamePass so I can load it up whenever I want now without having to change discs.
100% digital ownership though is not something I would be happy with on console for two reasons; (1) release day games are too expensive considering there's no packaging or disc manufacturing costs but I can buy the physical version £10 cheaper from the likes of The Game Collection or similar here in the UK; and (2) I don't feel like I own a digital game at all and there's always the feeling that you could lose access to the game if the publishers decides to remove it from the server or the server goes down (which happened with the Xbox Series X last weekend when I was unable to play the single player GTA V campaign). However, I am happy to pick up digital games in the sales when they are heavily discounted to more appealing amounts (sub-£25). This then makes up for the lack of production costs which is never reflected in the price of the games when they are first released. Paying £69.99 for a digital PS5 game is eye-watering but paying £59.99 for a physical disc that has worth is fine (albeit still expensive).
On PC, I buy all of my games digitally because, well, physical copies don't exist anymore but, even so, 99.9% of my games are bought much cheaper that, say, Steam prices from key resellers such as CDKeys.com so I've never had a problem with buying games that way for PC. Consoles though have less options and so physical discs remain the best value for me personally.