While this would be great, we'd have to stockpile on said media which is less convenient. Discs were great but they'd always get lost somewhere and/or used a lot of space when stacked.
I'd personally prefer to download the files on a hard drive which could hold thousands of games while saving space. Only problem being that these games would need to be transferred to an SSD for better read/writing speeds. On the other hand discs would only need to be plugged into a disc slot which may or may not seem very convenient considering how most laptops/PCs don't have those, meaning we'd need to buy these extra.
Either way having pretty discs with collectibles like in the good old days seems like a good idea if you're into that sort of things.
People dislike the lack of effort and environmental impact that results in an amalgamation of stolen work. While artificial intelligence can indeed be put to greater use and benefit humanity in fields like agriculture, medicine, industrial development, etc., morons use it to generate slop that in no way benefits the goal audience and is written off as "the future". Some examples of said practices are Nvidia, OpenAI, Meta and Microsoft. Not to mention how much money is wasted for nothing.