Digital only if it’s the only available way to get a game (aka indies) or deep sales otherwise it’s almost always retail mainly because of the much better prices plus I can sell/trade in the game.
Physical collections are cool, and if I was filthy rich I’d love to have one of those rooms like one in the pic you posted OP (but for all consoles). However, I’m digital only for buying my games. I’ve even stopped getting Collector’s Editions cuz I just don’t really have space to put them anywhere and they just collect dust for nothing lol.
I can’t remember the last time I played a game off of a disc. But I do buy some physical copies if I want to support the studio/devs (Pillars of Eternity, DQXI on Xbox, Hades). I’ve also started “collecting” some older titles that have sentimental value (KOTOR I&II, Jade Empire, OG Fable). It’s kind of cool to have them on my shelf, where my kiddo can take a look, thumb through manuals, etc.
If there’s a steelbook/CE that I’m interested in, I’ll cop. Again-- to have it there as a cool trinket for my video game-obsessed child.
But generally speaking, it’s all digital. The convenience factor is just too huge to ignore.