I've made a similar topic over on the Games Discussion thread once before. But I think being on SW's I'll get more of a response.
Since the PS4, I've gone digital on all of my consoles. The 3DS & Switch too.
Why? Well, I own a lot of physical based media already. (A large DVD & Blu-ray collection.) I would even consider purchasing a digital library of the films/tv series I own, but in those terms, physical is still king if you're wanting superior quality over streaming & what not. Until then, I'm sticking with physical in that department.
For those who purchase games digitally...most prefer it over physical because it's more convenient not having to switch the discs/cartridges out.
For me personally, Steam really hit the nail on the head when it comes to owning a digital collection. I have always liked my purchases to be in one place. Compact & I can access it wherever, whenever. Especially when it comes to video games.
Now, there's the question of whether you actually own your digital library or not? When the Wii Shop was taken down, you weren't able to re-download the content you purchased unless it had already been downloaded prior to the point of no return. With the PSP however, you're still able to download the content you purchased from the PSN I believe. Although the search function and other features aren't available anymore.
As far as I'm aware, the closing of the Wii Shop channel has only been the first example of Nintendo ridding you of your purchases? Will it happen with the 3DS & the Switch? Who knows...