Yes it does make sense:
Physical games are always cheaper.
You can trade them in to offset the cost of a new game(which games them even cheaper)
Not everybody has internet fast enough to regularly download the massive game files.
Most ISP still have some sort of data limit and downloading just 2 games could put people over that limit.
It can take hours to download a game, whereas ordering online means you only have to wait for the postman if you pre-order a game. And then sometimes you'll get games a day early.
So physical copies make MORE sense than digital at this moment in time.
To illustrate the price of digital games - Dead Rising 3 is £49.99 on the Xbox store but I can get it for £38.95 online.
Well thats Xbox raping its customers
If you have a ISP with a data limit then you are a noob
Disks get damaged.
Dead rising is 25GB I could download this on 8mb quicker than ordering it online and waiting in for the postman to turn up.
Its environmentally more friendly (less packaging)
Its more convenient as I don't have to get up and put a disk in a console
I see no reason why games could not be traded in or released from accounts online.
So yeah there is an arguement for both...sides but my reasons win based on customer satisfaction rather than excuses to be taking for a mug