From a purely utilitarian perspective you are completely right. I guess that I just tend to think (for many of the reasons stated above) that actually owning a physical copy of an album is more interesting.
To add to the conversation, I think that this interview with the guy behind Paysage d'Hiver is really interesting. In the very end, he described the importance of a holistic view on music production, in which the artist treats the music, associated visuals, logo, and other aspects of production as all being important. I think that solely relying on digital downloads would cause much of this art to be lost. Thus, I think that physical products are not only better for fans, but for musicians as well.
http://www.invisibleoranges.com/paysage-d-hiver-interview/