Physical media on PC is as dead as it can get. I haven’t touched an optical medium in the last 15 years, and i don’t have a drive going on 10 years now. I also know of noone around me that is still using CDs/DVDs, the last time i messed with DVDs was when ripping every last one of them, and even my grandma has opted for converting her music to FLAC and freeing up the largish space her music Cds were using, making her collection both save from bitrot and a lot more readily available. I could get behind distribution per USB-Stick, but sticks that are fast enough to handle 100GB+ installations comfortably aren’t cheap in comparison to optical media, and in most cases it would only mean they are used for a single time when copying them to a network storage, in the end just creating tech waste.

DRM-Free installers - that’s where it’s at, and that is what i store; alternatively, for PS1/2 games, compressed CD images are the way to go.

Collectors Editions are the exception, but even here I would prefer the USB stick format if it had redundancy built in - nowadays that is the truly universal storage that any computer can use without needing extra hardware.