They aren't wrong though. Gamers at large just prefer downloading games. The vocal minority likes physical games, including me. But the average person who wants to play the latest popular title doesn't put that much thought into it. "Why buy a game when I have to download patches and content anyway? I don't want all those boxes I'll never use cluttering up my living room."
I think there is merit in producing physical games even without mass demand, and I'm upset this is happening. But they're not wrong in their claims.