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For a very long time “hard copies” were just a physical precache of the download. What you actually paid for was the online store code inside the box. I’ve stopped buying boxes after the second one like this.

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The software I bought on CD/DVD was never like that unless you mean needing to contact some activation server. As far as I know, things like the Switch game cartridges are also real (presumably with a similar asterisk). The only annoying things are these installers nowadays you download for e.g. Chrome or, a bit longer ago, Flash, not so much the things sold as copy to own (resellable)

I wouldn't discourage people from buying owned copies, especially when they can find an option free of DRM

CD? Sure, that was entirely in the good era. But the last two games I bought on DVD (something forgotten from EA I think and the nice Mass Effect Trilogy boxset) were what I described - store codes printed in the box, can use the attached physical media to save on downloading time.

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