The only problem I have with digital is you shift any value left in the games from the physical media to being permanently locked to your account.
You can never recover any of that value. I suppose it doesn't really matter if you only buy 3 or 4 games a year, but if you go through 4 a month it helps to be able to resell them to friends or share the cost of single player games so we each can play different games at a much lower cost.
Plus you can almost always pick up the physical releases cheaper than the digital ones, which doesn't make sense to me. Use Amazon if you are pre-ordering and you get it on launch day with a nice discount. Best Buy Gamer's Club if it's after launch day for the same discount and the ease of walking into a store to pick it up on the way home from work.