First off, thanks for the heads up. I don't own an Xbox One, but I'm still interested in this new game. Early previews were warning that the gameplay had issues, but it looks like Rare shored things up a bit. It currently has a 71% on Metacritic, which isn't great, but at least it sounds like a decent enough game for fans.
As for a physical release, I wish they would, but my bet is no. We all know the Battletoads name here, but I don't think the average gamer today does. So it's more of a niche game, which explains the digital release and $20 price tag, rather than getting a retail release by Microsoft. Normally Battletoads is the type of game that a "limited run" publisher (like LRG) would want to pick up. But there's two problems: (#1) for whatever reason, the "limited run" publishers only seem to do PS4 and Switch games [no one seems to publish Xbox versions.. anyone know why?], and (#2) it's a Rare and Xbox Game Studios collaboration [not an indie release], so they would have physically published it themselves if they had that intent.. since they're a major first-party studio, they don't need an indie publisher. As a Microsoft game, that also means it won't appear on Switch or PS4.
Sometimes a game does so well with digital sales that the company is finally compelled to release it physically -- for example, Rocket League. But I don't see that happening with Battletoads. Look at Cuphead on Xbox, which got a lot more sales/attention than Battletoads but never saw a physical release. Some minor good news though: if you're just hesitant to buy directly on your Xbox, you can buy this digital code for Battletoads from Amazon:https://www.amazon.com/Battletoads-Stan ... 08FS1QJZ1/