I understand if you don't have the CD they can remove your access to it arbritarily like when they lose the license but
Nobody ever complains about Steam and they have a similar policy of no physical media going back decades. I have hundreds of gamed accumulated on Steam and no game of mine has ever been removed.
I bought the cheaper Xbox last year to play Overcooked with my girlfriend and it has no physical media. I just download and play games no problem. I actually find it more convenient not to have any physical games.
So I guess the question is- what is the reason for the strong rejection of the digital version? It is the natural evolution of these things.
It's all good until they pull the content you thought you bought. I also prefer the convenience of downloaded games, but if it's a game I really like, I buy the physical version.
For example push an update so your console can't read certain games when they lose license. Or simply break backwards compatibility in specific ways.
I guess the games I really like are all digital. Games like Slay the Spire, Rimworld, Balatro, etc. I know that the data is sitting there in my hard drive. I can copy it, move it, delete it, etc whenever I want.
I honestly haven't included a disc reader in my PC builds for over a decade. I guess on Xbox it's different because Microsoft has more control. But again, if they wanted to take away the games they could do it either way.
If that's main reason, I don't see the point of continuing disc use
Valve has the reputation to back it up. Sony, Microsoft and Nintendo's reputations make all digital game libraries a guessing game for when they give up and shut it down.