All physical. Sure, space management is a chore, but being able to buy, sell, and lend my games as I please will always be something I value more than convenience.
Also digital is only appealing for whatever current generation it is in, afterwards the infrastructure feels dated. There are a lot of PS3 digital-only games I have yet to play, but dealing with the PS3's download management, PSN store, and the speed at which these two run, is so, SO terrible.