That's good there are still some physical copies our there. It seems for PC and Xbox, it's mostly downloads. I bought a disk for RockSmith thinking it was a physical copy - all it did was download download and ply it through Steam.
PC is a completely different and interesting history, but for Xbox it's simply because msot people are buying into Gamepass. There are even stories about how some indie developers have considered publishig for Xbox but did not think it was worth it without a gamepass deal from Microsoft. It was that big a deal for visibility on the console.