But you never owned it in the first place... even when you had a hard copy. You only owned a license.
Google "First Sale Doctrine". You own a copy. Software is tricky because it comes bundled with a license to install it/run it. But the actual disks that contain the installer? Yours.
All these things go away if you buy a license directly from the stuido, and are guaranteed perpetual use
Yeah, but that won't happen. In fact, the studios are pushing for per-device fees, separating TV/Computer/Mobile rights, and going more towards a "per-view" model.
Even if they were willing to, even if that didn't cause all kinds of problems with residuals, even if it didn't impose a perpetual and unbounded cost on the studio... what happens when the studio goes out of business? How does fulfillment actually happen
My problem with physical media is that it's not possible to carry it all with you... so when you want to take a road trip you have to be selective and predict what your kids are going to want to watch.
You could ask them ahead of time and plan ahead. Or you could carry a hundred disks in a relatively small wallet. Or, depending on where you live, you may be able to copy the DVD to a hard drive for transportation.
When kids damage the media, you are stuck purchasing another license to something you already have a license to use.
Did you use your legal right to make a backup?
But personally, I find the times I am without access to stream, a la ton a plane, in a tunnel, or just with a lot of peopel using the Internet at my house, where ever, make me want a local copy. And that means a physical copy, in general, if I want it on a device I control that doesn't need to call home or self-destruct. It also means I can resell it, loan it to a friend, etc.