Agreed, a single physical copy can easily be lost.
Making physical copies often requires cracking/piracy. E.g. in my jurisdiction it’s illegal to circumvent “functional” copy protection, even though the right for a private copy is written in law. The problem is courts consider DVD’s long broken copy protections functional.
This is why in my opinion physical copies and piracy/cracking go hand in hand. The former isn’t possible without the latter.
E.g. I bought Lego Star: TCS again on Steam, because it was less work than getting rid of the copy protection on the disk.