I said yes, and part of it IS because of physical space, but mostly because I find it more comfortable and personal, but so far, in terms of special editions (the real deal, not the shitty ones), I haven't seen a digital "special edition" that lives up to the physical one, sure you get the special content, but for obvious reasons you don't get the pretty statues and stuff, and as I said, digital hasn't shown me a way to make me disregard that if I want a special edition... However, lately that seldom happens anyway.
My BIGGEST issue with digital versions: the download speed might be a pain depending on your net connection and size of the game.
Anyway, let's imagine perfect-internet-land (or at least what's considered good enough for today's standards), I'm all in for digital download. As a matter of fact, ALL my music, movies and TV Shows are being bought from Apple nowadays, games however not that many, since I play a lot on the Xbox and they suck at releasing digital games; on my Mac however I always download from Steam or something.