People look at me like I'm crazy for not giving in to streaming services and insisting on maintaining a music library. It's hard for me to avoid concluding that these people simply don't really enjoy music.
I do think that there can be something lost when listening to an assortment of single tracks as opposed to cohesive albums. Getting a new album and letting it play all the way through definitely feels like a different experience to me than putting on a playlist of assorted tracks.
With the prevalence of streaming music I wonder if more and more artists are abandoning the creation of cohesive albums?
There's also the issue that, I think, that compressed audio files are particularly susceptible to bit-rot (perhaps compressed files of all kinds?). If you don't have a physical copy to re-rip from then you could well be boned.
I do think though since so many people don’t listen to albums anymore some shift will probably happen over time. Though it seems like nothing has changed too much yet and it has been a few years.