Don't get me wrong... I love BOTH. My issue with physical media is that after a while it just takes up a lot of space... at the same time (if you're single like me), if you have a dedicated room you can use as a library (or man cave), you can fill up the shelves with blu-rays and other things and show off your collection/inability to grow up and act like an adult.

At the same time, I have an Argosy media player with a 2 TB hard drive (and plan on moving up to a Mede8er 500X), which works fantastic! Lots of 2.5 to 4.5 gb 720p MKVs, with a few 8 gb 1080p MKVs for the more appreciated movies (like SUSPIRIA), combined with MKV MERGE, which can add audio tracks later to the movie files (like commentaries or dub tracks).

The Argosy runs @ $95 (the Mede8er 500X about $150 to $200); the 2 TB hard drive @ $80 on ebay. So for about $300 to $400 (a media player and 2 hard drives, one to use and one for a back up) you are pretty much set for life on movies. Even so, I LOVE my blu-ray digibooks and special editions.

In the end, there is nothing saying you can have both.