Reading it back I think I've might've come across as defending the decision. I am and I'm not. I do think what Sony is doing is stupid and in the simple digital vs physical argument they shouldn't be getting rid of physical. That said, I think the real problem that people are feeling but maybe not being able articulate isn't getting rid of physical, it's getting rid of what physical represents. For the PS physical media is an alternative to the PS store. It gives customers some control over the pricing because if the digital store price is too high they can go and see if they can find a physical version for cheaper (or make it cheaper by buying it full price and then selling it after you're done). It also gives them a product instead of a license (though even that is getting somewhat questionable when the physical disc no longer contains the product but just the license to access the product), which is a stark contrast to the PS store where Sony will happily revoke your licenses if you don't do exactly as they say.

Without the physical option Sony gains effectively complete control over the pricing of PS games and how the sold licenses get used. Had Sony approached this from the perspective of the consumer they should've seen that to go digital only they need to do more than just go digital only. This is a hypothetical but I imagine there wouldn't have been any real controversy if Sony had announced two more things with the digital only announcement. Open up the platform to third party storefronts (realistically that along would've shut up most people because now everyone is giddy at the thought of Steam coming to the PS) and give consumers (some) digital ownership of purchases done from the PS store such as being able to transfer your license to another user. You'd still get physical media fans being upset but that would be nowhere near as big of a outcry as what Sony is currently getting.

But Sony went with the MBA number crunching solution which I described before. Who cares what the customers want as long as the balance sheet looks positive.

Why wouldn't they just increase the prices on physical copies to compensate?