I like my physical media.
For music, and movies, and so forth, anyway. It gives me freedom, to some degree. For instance, my collection of CDs is reasonable (500+), and some of them haven't been MP3'd yet. But worse, some were MP3'd years ago, at a low bit rate because when your player only has 64Mb of storage (yes, MEGAbytes - a Diamond Rio 500 - look it up!) you have to compromise a little.
I'm now slowly going through them and re-ripping at a much higher bitrate. In that scenario, having media wins.
However, I'm racking my brains trying to think why I'd want the media for games.
I had the media for games a while ago, and it was a PITA. I then bought the iD Complete Pack on Steam - every iD game up to that point. I still had my media for old iD games like Quake III and Quake III Arena, but installing via Steam was much easier. No mucking about with CDs, no hunting through packaging trying to find what the serial number's written on... And no having to find and download the patches, then install them - sometimes in a specific order.
With Steam and no physical media, I just download, copy the serial number, and go!
It's not like a re-install from original media would allow higher quality. Just more hassle.
I did once have an attachment to the original media for my games. Not any more. Not since I had to rebuild a machine and had to go off finding patches, hunt for lost manuals with serial numbers in them, and deal with scratched media. When I had a brand new machine later on, I just shuddered at the thought of the pain and time the physical media route would take. Then I saw the Complete Pack on Steam, and got my wallet out.
I can still just about see a point to having the media for music and video materials. But that's partly because backing up virtual only media (especially video) can take terabytes once you've got a reasonable collection. And partly because I'm loathe to do any encoding at anything but a very high quality level, as I've learnt my lesson!
I suspect that by the time I'm halfway through re-encoding my CDs, I'll be contemplating whether it's not just better to go looking at how much they'd cost to buy from Amazon or wherever... It may not stop me from re-encoding, but it might convince me it's not worth buying the physical media for my new music purchases any more...
Sad but true. It'll be the end of an era.
One final sad thought on the end of eras... I remember when albums had two sides. But right now it looks like I will have to explain to my children (well, my mates' children) that we once bought songs in bundles called Albums, on which the artists had sometimes painstakingly arranged songs into a specific order, for a certain effect. And that part of the pleasure of listening was to play the album, in order, to get that effect.
Ye gods, I feel old now.