I was 100% in that camp up until last year but now I just download them to save physical space.
It's annoying having the keys (e-mail usually), games (Steam, Origin, Uplay, ISO if from CD key website) etc. in different places, though.
That is one reason I try to stick to the larger places for digital, as at least they should be tied to your accounts once you enter them.
That just made me think of a few nightmare scenarios though actually, so yeah, there are positives and negatives for both I suppose.
A lot has to do with I know longer stay up for midnight releases, etc. If all this digital distribution was around like it is now when I first was gaming on my PC, besides the fact internet was much slower, but if that was like it was these days too, I would probably be much more inclined to go all digital, as I would still play into the wee hours of the morning. But the day Bioshock is released, I will be at work, actually am not getting home until later then usual, which really I will not have it delivered to me before then anyway, so I will probably have just enough time to download it, and maybe check it out for an hour before I have to go to sleep again and do it all over. It sucks getting older and wanting to still be a gamer. But I try to make it work. I should have Infinite finished by end of April hopefully, while others will beat it the same day. Some games I really try to make an effort though, and this is one of them.