I long preferred physical discs. Living out in the country where I do, Internet had not been good enough (thank you, Elon Musk and SpaceX, for Starlink: now everyone with a good view of the sky can have decent Internet). But even before we had decent Internet, I had kids. Each kid has his or her own Xbox.
Unfortunately, because the games all seem to require the physical disc to play, this renders them fundamentally crippled compared to digital downloads for anyone with multiple Xboxes in the same household. This isn't an inherent problem with physical discs -- they could be used to install and then not require the disc, but for what I assume is some form of copy protection, they never seem to work that way.
With the downloadable versions, even if it took all night or multiple days over a slow DSL or T1 connection, we could download the same game on multiple Xboxes linked to my account and we could all play instead of just one person.
One other player advantage to downloaded versions over discs is changing between games. If you just leave the disc in for Starfield for weeks or months on end, then this is moot, but if you play multiple different games or want to watch that 4k HDR movie disc, you have to pop out the current disc, store it, put in the new one, etc. And then be sure to remember when you put the one you removed so you can go back to your original game later.
Lastly, similar to the short-term hassle of remembering where the discs are, is the long term need to keep them. If I want to go back to play Fallout 4 (which I originally bought on disc), I have to find the disc. For all the games I bought digitally, I just select it from the menu and play. If it's been years, I confess I may never be able to find the disc, meaning that game is lost to me, permanently.
So for me, while I think it would be a terrible mistake for MS (or Sony) to not offer at least one version of their console with disc support (for people who can't get or afford good Internet), or at least support a USB3 add-on drive, and while I prefer having the drive for my older games and movies that I did buy on discs, I actively avoid buying any new games on discs now due to all those issues.
Ironically, for music, I'll still go for CD's and rip them.

(That's the only way to get the deep cuts and bonus tracks that are never available via streaming services.)