I glad my music collection was on physical media when tornadoes knocked power out to just about the entire county. I had something to cure the boredom besides drinking and rioting! (Well, once the weather stopped trying to kill us all.)

I'm also glad my music is on physical media every time I don't have to pay insane rates for a couple hours of wifi on a flight just to listen to my music, or when I'm killing time somewhere where cell service is spotty at best.

I don't yet live in the future where access to the cloud is a given, and I prefer my devices don't become completely useless without a data connection.

Edit: My primary physical media isn't a pile of CDs—I have plenty of those too, but stopped carrying them the moment I got an MP3 player. Now I carry almost my entire collection on my phone and a whole lot more than that on my laptop. I see nothing wrong with having copies of things in the cloud (remote backup FTW), but I'm not about to take a shotgun to my local disks.

"physical media has enormous problems for anything besides long term archival use"

for those of us that consider music as art that is precisely the point, especially re: children browsing their parents collections