I prefer digital on PC nowadays as it's cheap keys on the latest releases but with console, I prefer physical as I do like to collect some classics plus I can trade games in. I bought Spiderman for £48, finished it and traded it in for £41 10 days later for instance, so I could get another full priced game already in the knowledge that I've got my money's worth out of a game which I finished and will never play again for just £7.
Digital prices on console are outrageous though - £60 is disgusting for new games especially if you can get a physical version for £40. It's convenient if you hate disc-swapping and clogging up space plus you can get some cheap deals through the XBL/PSN stores in the sale but it really adds up on new titles especially if they have a season pass, meaning a new release could cost upwards of £100. There is also not many games worth collecting these days on the current gen and as we've seen with Black Ops 4, the disc versions contains literally fuck all of the game so going forward, they'll be worth sod all.
I do have some amazing collections of classic games particularly big box ones on PC that are worth decent money but the way gaming is going; digital will probably soon take over even on console. Retailers are also reluctant of buying up large stocks of products because they don't want to inject too much money in stock that may have to be sold at a loss months later or turn dead - GAME are still sitting on countless copies of Football Manager 2014, Battleborn and Evolve for example. They'd rather have minimal game stocks with most being pre-orders and then money being put into high-margin goods such as console bundles and peripherals which are the big sellers this time of the year.
As long as streaming games doesn't become a norm; I'll be happy with digital on mainstream titles on PC and physical for major console exclusives. I'd struggle to spend more than £40 on a new game so new PSN titles is a no-go for moi.