Plus, when "renting" a movie costs $3.99, and "buying" it costs $5.99, there's not a particular reason to not click the "purchase" button.
DVDs and Blu-rays I purchased from the same era required a) advance planning and b) care. To the second point, most of the physical media is now destroyed (scratched, stepped on, lost, or just degraded), but I still have access to the copy of Cars I bought almost 20 years ago from Apple.
I only buy through Amazon Videos, with the logic being Amazon is going to be around awhile.
Sony will be around a while too, but as you've just seen here, it's not about how healthy the company hosting the video files is.
You answered your own question very efficiently.
You're forgetting there's a slice of people who want to "own" a movie library but don't have the technical acumen to rip and/or (more importantly) host (consider that you'd have to stand up a Jellyfin server and have a good amount of HDD space -- I personally have 50TB).
Again, it's not _that_ hard in general but daunting enough and with high enough startup costs to dissuade a lot of people.
Streaming is so easy, don't need to find a disk. Load it, watch all the ads and warnings.
Licensing issues like Sony's aside, the studios did MoviesAnywhere right. I can buy the disc (often used) and redeem the code, or buy digitally, and download/stream everywhere that matters to me and my family.
People are willing to give up everything for not having to wait a couple days to watch a movie.