One benefit of physical media that I don't see mentioned here: if you like underground music, the rarity of the CD/Vinyl can cause it to greatly appreciate in value over time. It's a great reward for dedicated fans who are willing to jump on a release early. A lot of my CD's double in value within months (eg this album[1] came out only 2 years ago* and has already tripled in value)
[1]: https://www.discogs.com/master/1701108-Spectral-Lore-Mare-Co...
*edit: I forgot what year it is