This is not about digital vs physical.
CD's, DVD's and BluRay's are also a digital medium at the end of the day.
It was just a lie, there were no digital copies for purchase, they were only selling "lifetime" (as long as the service exists) rights to rent from them.
Buy physical or digital copies, whatever. Just be sure you are actually buying a copy.
Exactly. Optical discs still have data that can be ripped (In some countries it’s explicitly legal to keep a back up). You have something tangible you can keep.
They weren't selling digital copies. You could only get these by buying a physical copy. They came with a code allowing you to also stream the digital version.