In the 70's, owning an LP was awesome (and necessary) because there was usually some effort put into the artwork. Today, no one wants to own a mass produced DVD/BluRay Disc with shitty artwork and no liner notes.
Some CD's still come with good artwork, but the generation now values owning digital media.
That being said, I am deeply concerned about central media control allowing companies and governments to become revisionist; editing out controversial portions of various works as they see fit. I would like to see legislation that would prevent that.
I guess this is what the RIAA/MPAA doesn't like with the streaming business, they can't resell the same material every time a new standard comes out.
My brother, on the other hand, is a bit older and fetishizes music packages. He still has a giant shelf of cassettes, a rack of records, and a huge row of CDs, elaborately alphabetized.
But that's just my thing; DVDs I care much less about. I do value physical books significantly, though. The difference is, of course, is that a stack of dead trees is independent of electricity (unlike CDs or DVDs) yet has higher resolution than anything electronic.
But when it comes to my music collection, I've been gathering these MP3s for something like 13 years now. And many of my most valued recordings are audience/soundboard recordings of live shows, something the current services don't really offer.
It's not necessarily that the generation does not value physical ownership anymore, but that there rarely is any value left in physical ownership.
This is the case in just about any digital media: a few years ago, video games came in big cardboard boxes lush with items, with big manuals and interesting artwork, etc...
Today, they generally come in plastic DVD cases with a 2-leave "booklets" which isn't worth the cost of the paper it's printed on, and even "collector" editions are garbage.
There are exceptions to this trend: The Witcher II on the video game side, or some deluxe packages (NiN's Ghosts I-IV "Deluxe" and "Ultra-Deluxe" limited editions were awesome, so were Danger Mouse and Sparklehorse's DNOTS book package and Sigur Rós's Með suð í eyrum við spilum endalaust, as far as I'm concerned) but by and large physical ownership is worthless, because there is no additional value in it[0] compared to purely digital. edit: and there usually is a severe loss in usability (you have to install or transcode the physical media to your digital devices), plus no gain (most DRM-laden purely-digital media tend to be DRM-laden as physical products as well, so physical ownership is just a shiny box for your virtual leasing).
[0] not completely true for music, services or artists offering lossless tracks are few and far between overall, so while I've pretty much entirely switched to non-physical ownership for video games (via GoG and Steam), I usually go with physical for music, but my motivations to do so are not the most common: I consume my music with an album or artist granularity (I never buy single songs), I value the lossless quality (CD or above) as a backup source and I don't mind waiting for music (I don't buy huge amounts of it and tend to go "all out" when I do, getting the complete discography of a given artist in one fell swoop)
I do not buy DVDs because I find no value in paying $30 for something I'll watch once and then let sit in a box somewhere. Instead, I pay Netflix $8 a month to watch a a couple movie or TV series in a month. I don't have something lingering around on a shelf taking up space I'll never use again and I think $8 is a reasonable price.