That's pretty much how I see it too. Every generation has people who refuse to move on from the technology they grew up with. Right now, it just happens to be physical media they're buttmad about because they let social media lead them around by the nose. It's simply the latest thing the algorithm told them to get irrationally upset over while they mindlessly scroll Facebook/Instagram/X/etc..
People once swore they'd never give up vinyl for CDs, CDs for MP3s, or DVDs for streaming. My grandparents had endless complaints about TV remotes, my mom complained when her phone lost the cord because she swore it made the call quality "worse". Hell, my dad still bitches about cars not having carburetors anymore and hates electronic fuel injection. Every one of those changes was met with some boomer screaming, "The old way was better!!"
Eventually, though, convenience and technology win out because they solve problems the old systems can't. The same thing is happening with games. Modern titles are simply too large and too frequently updated for physical discs to serve the role they did 20 years ago. Nostalgia is fine, but it doesn't stop technology from moving forward. And I bet most people bemoaning the "loss" of physical media haven't touched the moldy box in the attic that contains the 400 disc manchild collection in 20 years. How many of you still take a fucking steam engine to work each morning? That's what I thought.
It's funny watching so many boomers dig in their heels over this, because every generation eventually becomes "those people" who insist the old way was the only right way. History just keeps repeating itself.
