I’m not nearly so optimistic. I think we have a generation of kids now who mostly never owned any physical media, having grown up with Netflix instead of vhs/dvd, Spotify instead of CDs, steam instead of retail games, etc.
I'm pessimistic about physical media yes. That's a legacy technology at this point.
I see nothing wrong with abandoning physical media - as storage got larger and internet faster, being limited by clunky disks has become kinda pointless unless you're specifically into collecting. I see nothing wrong with moving on from them as long as it's towards local DRMless files.