The topic here is DRM vs non-DRM'd media. It's orthogonal to the topic of physicality: you can have DRM'd physical media (think Google Nest) and you can have non-DRM'd digital media.
Switching back to the convenience of using digital instead of physical is a disservice to the discussion because it switches the focus on something that is totally unrelated and makes people believe that those who prefer non-DRM'd media are somehow reluctant to adopting streaming platform. I definitely see the convenience of it: I barely have any music files on my computer, I stream it all from Youtube or Soundcloud or Bandcamp. And like you I have spent MUCH more money on artists now that I can stream them than when I bought CDs. But when I want to get the files for offline use I know I'm in good hands because those platforms allow me to do it and have files I can use forever without ever reconnecting to the mothership.
So, to come back the initial point: yes we got scammed, because we didn't read the fine print. We didn't understand that DRM'd media is never bought, it's always rented. We switched from buy-it-for-life to subscribe-until-the-platform-dies