There are plenty of unencumbered digital formats distributed physically that are unrestrictable. Red Book CDs/CD-ROMs, DVDs/DVD-ROMs, and to a certain extend Blu-ray/BD-ROMs (and lesser extent, but still possible UHD Blu-ray). At conventions indie devs sell digital copies of their games on flash drives.

There’s nothing wrong with digital media (defined literally). While I like physical copies, even file based digital media is mostly OK. The problem is DRM’d media regardless of how it’s distributed.