I don't necessarily agree that only old farts care about physical media. I have several young nephews who think physical media is superior by far, but unfortunately it's also a lot more expensive and tends to be out of their price range. What physical media they own they tend to value a lot more. For example, a GameCube Smash Bros. disc is worth its weight in gold.
I think that perception the digital is superior is propagated over the internet, but who tends to be most vocal on the internet? People who spend all their time online. That's not representative of all console owners. I suspect there's a quiet majority out there who would prefer something tangible for their money.
Reserved for modern gaming discussions.