It doesn't particularly matter. Digital would be better if they would make bigger hard drives though. For smaller games it's not an issue but when you have 6-10GB games it fills up an HDD fast. Not to mention games that have growing save files ala Elder Scrolls and Fallout.
Other than that a game collection is a game collection as long as it's all accessible in future generations. As long as I can still download all the games from XBL and PSN I have now onto the future consoles I'll just be fine and dandy.
My theme song: http://www.youtube.com/watch?v=SBjQ9tuuTJQ Most people think they are the odd one out but never truly are. I am that one who actually is. :D
Digital. While I like having a case, and a physical collection to show off, and the ability to sell old games....it's rare that those opportunities come up and/or are worth it. I prefer having a collection that can be backed up, redownloaded and transferred easily across multiple consoles/PCs.
Digital is the way to go (STEAM). people complain about new XBOX maybe having this, i like the idea. If you get new box, you can transfer your games like XBLA games now. No biggie. Only people complaining are the ones that probably can't afford buying new. Just saying.
I only buy new, so your arrogant view point is inaccurate.
Physical, because in my area the internet isn't the greatest, and I can still play my game in 15 years on a different console if I want (I still play Ps1 games released Prior to 1998, so this is not an exaggeration)
Also the current % seems to back up what sales have been on consoles (only around 20% being digital)