It’s not the disc itself that people care about, it’s having a transferrable license. People want the option to rent games, or give them away/resell after playing. Physical media provides some legal protections for that because you are buying a license attached to the thing storing the software.
Digital distribution is a perfectly fine way to get a game, if it weren’t synonymous with big companies taking away your ownership of the right to use software you purchased. You can’t share a game you enjoyed with friends. If you lose access to your account you’re SOL. If the host server shutsdown, you better have had a stable copy installed/backed up.
People don’t hate digital downloads, they hate the consumer abuse they have enabled. Stop the consumer abuse, and only collectors will care about physical media.
If you know anyone with a sensitive nose, ask them if the place you live in smells musty or moldy. I’ve had family members go through similar issues also without any help from the medical system and mold was a major contributing factor. You and anyone else who lives with you will be nose blind to it and won’t be able smell it without spending a week or so elsewhere.