Although true, another factor to consider is that there was no streaming back then. It was a contest (so to speak) to provide the best physical media to the consumer. Though the vinyl resurgence started around 2007, digital downloads and streaming services were already cutting into CD sales.
With the advent of these two platforms, the revival of a CD comeback seems bleak at best. Plus, as mentioned, they don’t have the cool or nostalgia factor.
Ive only read 110 posts so far, so bear with me.
Regarding physical versus digital, id say the quality is pretty much the same. I’ve spent about 10-15k$ on video game consoles and games. Now, i already have a ROM image on my PC of all of those (ROM=Read Only Memory, meaning game diskettes, cartriges, CDs etc).
Still, i collect games, for the reason of getting to hold them in my hand, read the labels, look at my shelves 
BUT when i want to play a game, im NOT going into the game storage to find the correct game item and the correct gaming console. I am going for an emulator that plays all those ROMs that i downloaded, that loads and starts in about 2-10 seconds. I have bought about 20% physical of the ROMs ive got, so money have been given to those in need. (Many aren’t possible to buy anymore and many ive bought several time off Nintendo)
There is nothing like feeling the physical game in my hands, though, and inserting it into the machine (and no, the"machine" is not a “woman”, incels 
) . No digital is close to the physical media feeling. I read the manual when i’m on the bathroom, i think about the game, and i look at the game. Before playing it. It excites me, and preps me for playing.
Something similar could be said about music CDs.
Yes. I had a LOT of music on cassette for listening to in the car or on my trendy walkman. I would record it from vinyl, and make the best “mix tapes”. But I had vanishingly few pre-recorded commercial cassettes. They were generally crap.
Yes, I am old.
… yet. Give it a few years/decades. Everything becomes nostalgic at some point.
Oh yeah, people are just clamoring for 8 Track Cassettes.
Not really, because that media does not hold up to aging. They’re not playable.
Vinyl held up, if kept in good condition.
CD’s will hold up for a while too. Tape (8 track or cassette) will degrade, even when sitting in a box.