The main problem used to be about piracy, but I think now it's really about making games as a service (even if they're not online for gameplay) because it allows more forms of monetization. The conversation should be about making games into a digital product that you can download and own the files. Piracy still happens anyway, and maybe this could make companies solve the problem differently, like only allowing digital backup for trusted players.
From preservation's perspective even the day-one release, no matter how buggy it is, is worth preserved. The speedrun community, for instance, often need to fix on an exact version of the game to compete, and a physical copy (implying a pinned revision) is often easier to agree on.
There are exceptions to this, when the day-one release is not playable. It is the trend happening in the software industry -- release early, even if it is literally unusable, because we can push a patch via the network -- that is disheartening.
The worst case scenario for preservationists is for games to become a streaming service via cloud gaming, which publishers may like since it pretty much prevents piracy and allows them to charge a monthly fee rather than a one time license fee. For movies and music streaming exclusives aren't a new thing and improvements in network latency and bandwidth are making game streaming more and more viable.
I’ve realized this at some point, but video games are ephemeral and should really be enjoyed in the now. Even if you can perfectly preserve a game, and the means to play it, tastes change so quickly in gaming that a game that’s fun today might not be enjoyable even a year later.
With digital games, you're tied to how long the console's e-store lasts, which is guaranteed to be sunset.
Eventually I couldn't justify buying the console version of a game that I was willing to play on Steam.
But you can look at it as a transferable license to otherwise digital games, and that's not bad. A console with entirely (or almost entirely) digital games would have no used game market, and that sucks both for sellers (which I don't do), and buyers (which I happily do).
It would be nice if there was some legal protection for the buyer that, by selling a physical license, that Nintendo be required to make the download itself available for some time period > 20 years.