Physical Game Pros: Used games - ability to buy and sell possibility of playing many years down the road able to be lent out Can easily be brought to another's house for local multiplayer without lugging console around or waiting on a long download Ability to play immediately
Digital Game Pros: Don't take up physical space Don't get physically damaged easily and if your hard disk goes you can redownload (for as long as the console is supported)
I have only ever sold a couple of games, but have bought a lot of used games. I still occasionally hook up my NES or Genesis and get much enjoyment from them. Years ago my first NES finally died, but because my cartridges are not linked to the system, I don't lose them. With digital downloads, 10 years later, you better pray your hard drive never goes out, if you don't want to rebuy everything on a new system..
The pros just far out weigh the cons atm for me to leave physical. The one exception is Steam on PC. This is because they sell games at a discounted price which to me makes up for part of it and because Steam has yet to stop carrying anything I purchased from them.