My two cents:
PC has been able to install the entire game for a long time. Having to swap disks soley to prove ownership was always annoying. With installation, systems.were needed pt prevent multiple installs, and activation made the second hand market difficult. There was plenty of resistance to Steam when it came out, but the convenience won.
To contrast, consoles had a long history of the cartridge or disk being the only thing and they were portable. That allowed trading, lending, and selling the physical item to be part of the experience for longer. They also didn't have the hard disk space or (good) internet connection like PCs did. Like early Steam, previous attempts at consoles without support for physical copies were unpopular. It seems convenience is winning again.
Consoles seem to be following the same path as PC, just a decade or two later.