I'm not married to physical media, but my main concern with digital distribution is who controls access. If I pay for content, I want to be able to access it on my terms. If the distributor is able to block my access for any reason, guess what: I don't own it, I'm only renting it. I'm mindful of this xkcd comic [http://xkcd.com/488/] that basically said if you pirate, it's yours for life, but if you buy legally, you're at the mercy of the controlling corporation.
If it's made clear up front I'm paying for a subscription service and I don't actually own anything, that's fine for the most part. A lot of entertainment is pretty disposable, so I don't really need to have it long-term. But if that's the case, I still want the option to buy titles outright and maintain complete control over my access, if there's something I really want to own.