The key concept with ALL of these options is not actually physically owning- or maybe possessing- the media- just a lifetime* lease at best (with the asterisk meaning: if the Studio doesn't opt to yank their content at any time... similar to the true meaning of unlimited* cellular service).
Basically, in exchange for the convenience and perhaps resolving the (apparently) onerous physical media storage space problem, we let several "middlemen" slip in between us and what we perceive we are buying to own. One middleman is a very rich corporation that will probably be around for a very long time, so not too much to worry about there. The other is the keeper of the content who can have a falling out with the first over anything and at any time and then just yank their content. If they do, tough luck (you did read the fine print didn't you?).
The alternative is to buy the physical disc (for probably less cost if you shop around), convert it yourself at your own quality settings rather than going with what some stranger has chosen for you and then rent out massive warehouse space somewhere to find some expansive room to store all those discs. If you can overcome the warehousing hurdle, discs also act as your ultimate backup if your own hard drive fails and your backup hard drive fails. But yes, clearly, a physical copy takes up a gigantic and thoroughly burdensome amount of space for the average consumer's video collection. So there is that.
As with all things that seem "too good to be true": choose wisely.
