It's true. But there are two sides to it. People like to collect things they are interested in. I'm sure you collect fishing lures, comic books, magic nose goblins, or something. I think that Switch games for instance are very non-collectable due to their completely plain spines and tiny size for cover art. But several companies like LRG are doing some cool things like full color instruction booklets, alternative art, steelbook or other packaging, and special extras. I also don't think anyone collects in order to display the plastic cases.
Personally, I collect because I want to immortalize the games that I'm interested in. Gaming is a huge part of my identity. I like having access to a physical library and I also like owning my stuff. I'm also an able internet seller for the occasions that something becomes extra valuable, so that I can use it to continue funding my hobby. There is no value for me in paying for digital games. Other "well I have a family and a job and don't have any time" people see things differently, and that's fine too.