Gamers still want the option for discs as over 80% of all PS5 console sales in the US have been for the disc edition.
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There can be a pretty significant price discrepancy between digital and physical copies.
Yeah, the digital price only goes down for sales, otherwise even years after release you’re paying full price. With discs you can buy from whatever store you want and usually prices go down a lot within a year (which you should wait anyway because games are too buggy at release).
And you can usually snag a used copy for even less without losing out on anything. That’s the main reason why I would never get a digital only console. But also, I‘m primarily a PC gamer, so I’m tied to digital only but at least I‘m not bound to a single store.
I think the key is that you have access to markets. The markets can determine the price rather than it being set to some desired value. Whether that’s a used market, or PC where you have the option of multiple stores and sometimes buying direct from the developer.