Physical. People who are buying the digital only model are thinking about the short term & not the long term. There are plenty of flaws with being digital only.
1.) You can't re-sell digital copies of games like you can with physical.
2.) Digital gaming prices are always at full prices the majority of the time on consoles, while physical copies of games usually gets discounted after a certain while.
3.) If you happen to somehow get banned from PSN, all of your games are locked to the platform & you can't ever play them again.
4.) What would happen if a company de-lists a game in which it gets taken off of the PS store from either licensing issues on certain games running out? Obviously you can re-download the games if you happen to buy them, but if for some reason they decide to take those games off of PSN servers entirely? If something awful happens to either your console, or if your HDD or SDD somehow gets corrupted & needs to be reformatted, there goes everything that you bought & downloaded.
5.) Then there's also the issue with data caps that a lot of people may have, plus downloading full versions of games takes a century.
At least with physical, we're guaranteed to replay the same games that we bought over & over until we decide to either give them away or trade them for another game. Plus you would also get a UHD Blu-Ray player by buying the physical model, too.