The bigger difficulty comes from the increasing complexity of games (feature wise) and their release state.
It's effectively impossible to release a "gold version" game to the quality standards of ~1990 physical media, in 2026.
The surface area for potential gameplay bugs is too large: it'd take another decade of QA polish.
So even if you have physical media for the release day version of a game, what can you do with that? Play a buggy version?
To GP's point about post-release physical editions, it makes more sense to sell something later that rolls up the most critical post-release patches and content.