Digital as much as I can now.
On PC, it's been digital-only for years unless a physical edition includes a code in the box and ends up being cheaper.
With consoles there are a number of advantages to physical, but trade-in prices have dropped a lot, and it's less convenient for me to do that now. Reselling online is too much of a hassle.
It used to be that I'd get back 75% of what I paid if I bought a game, finished it in a week or two, and traded it in. I never bought and played so many games as when I was doing that.
Now, it feels like I lose too much money or waste too much time on the resale to be worth it - especially if I'm buying the games on sale to begin with. It's obviously a very good option for trying out games that you aren't 100% sure about though.
But I also find that I do tend to revisit older games quite a lot, and many of the games I've sold in the past, I have bought again - sometimes more than once, and sometimes I have had difficulty getting them again. So it doesn't necessarily save money for me long term.
I was PC-only for a long time, but recently got back into console gaming a bit, and it's been 100% digital on the Switch except for Ring Fit which only has a physical version - and that's fine. I wouldn't want a code for that. If I was to sell it, I'd want to sell the game with the ring.
I've also got back into Wii / Wii U recently and while you can get a lot of games digitally, it's usually much cheaper to buy physical.
I absolutely hate the stacks of hardware that I've been accumulating to play these games though, and the stacks of game discs too. But the alternative is not playing them at all.
I've already recycled all of the packaging and stored the games in a CD wallet to minimize it as much as possible.
I really wish that Nintendo would have included GameCube/Wii backwards compatibility with the Switch.
We know the Tegra X1 is capable of it, the Wii controllers are Bluetooth just like the Switch controllers, and they could use pre-compiled shaders to avoid the shader compilation stutter that is present with GCN/Wii emulation since it's a fixed hardware platform.