Go ahead and take your 34 3DS carts with you to the mall, be my guest.
There's no doubt in my mind that options are a good thing. When it comes to acquiring video games, we have more options than ever before. Be it the Nintendo eShop, Super Target, or a Blockbuster Going Out of Business Sale, it's hard to go through a single day as a gamer without being offered the opportunity to buy a video game.
When Nintendo began offering their first party titles on the eShop in summer 2012, I was conflicted. I've long been a gamer who sells last year's titles in order to fund this years. Since then, however, I've found myself buying more and more games via the eShop (and PSN) even when the option exists to buy them cheaper in physical form. While I think Tom hits on some very important points in his editorial about the subject, I'd like to offer an opposing viewpoint.
1. Out of Print: The Economics of Infinite Demand
The thought process for most fans of physical media goes as follows: "Games are too expensive from the eShop, and Nintendo has no competitive motivation to lower the price." While it's true that there exists no other avenue to gain access to digital versions of Mario and Zelda, it's not at all true that Nintendo has no competition. The physical games are still competing. Most people will not spend $50 on a digital version of something they can get for $30 at Target, and if no one buys it at the high price, it will eventually come down. Sure, it may take a bit longer, but we've seen Nintendo get more and more comfortable running sales on the eShop.

Additionally, because there's no such thing as "shelf space" on the eShop, games don't go out of print. There may be licensing problems that cause games to disappear from the shop, but that can happen at retail as well. Consider the strange case of Xenoblade Chronicles. The game was a hard sell for Nintendo to localize in North America at all. They eventually chose to do so, with the help of GameStop, and the game was a smashing critical success. Within a few months, however, it became incredibly difficult to find a copy of the game for a reasonable price. If Nintendo had already been offering Wii Games for download in 2012, gamers never would have had a problem finding and playing Xenoblade Chronicles, and the game likely would have sold much better.
2. Accessibility: We're Going to Need a Bigger Case
It's absolutely true that it's possible for downloaded games to suddenly vanish because a service is no longer available or a password cannot be recovered, but the benefits of digital distribution far outweigh these risks. For one, it's not as if physical games are immune to becoming inaccessible. If I drop my copy of Chrono Trigger into the bath, it's done for. And while the case can be made that Nintendo has made it exceptionally difficult to recover digital games if the system is lost, it's not completely impossible the way it would be if someone lifts your physical games from you on the bus. Having the games tied to the hardware is far from an ideal, elegant solution, but it does allow the games to be played without an Internet connection and completely offline.
As someone who's owned a smart phone since 2008, I've become very accustomed to having access to all of my content on one device, and the more I get used to that, the more frustrated I get having to bring 10-15 little tiny stamp-sized cartridges with me every time I want to take my 3DS with me. Sure, it's not a huge hassle to pack these with me if I'm going to be gone for a few days, but what about smaller trips such as getting an oil change or a haircut? It's nice to have your games on the system ready to go and not having to play guessing games as to what will strike your mood when you're ready to play.
3. The Trade-In Debate: I Guess I'm Stuck with "Funky Barn"
As I mentioned in the introduction, I'm a chronic video game seller. I've sold almost every single piece of gaming hardware and software I've ever owned, and I've regretted almost every sale. Here's a short list of the video game systems I have bought and sold in my life: NES (x2), SNES (x2), Genesis (x2), Sega Master System, Sega Saturn (x2), Sega Dreamcast, Nintendo 64, GameCube, Game Boy Advance, Game Boy Advance SP (x2), Nintendo DS, Nintendo DS Lite, Nintendo DSi, Sega Game Gear, Sega Nomad, Sega 32X, Xbox, PS2 (Original model), Sony PSP. Quite frankly, I'm a mess. I get the itch to play a new game, and I start looking around to see what I haven't touched lately, and start heading to the used game shop or listing on eBay.
It's not something I'm proud of, but it's a part of me that I've had to fight as I think about keeping games around for my daughter to enjoy in the coming years. Digital distribution has helped me kick the habit. Like it or not, as long as I have a Wii U, I'm going to own Sonic All Stars Racing and Madden NFL 13. It's refreshing to know that these games will always be part of my collection and I don't need to worry about getting a dime for them at GameStop in a few years. So while some will, rightfully, list being unable to sell games a con, I'm perfectly happy with it.

4. The Storage Solution: Standards, Standards, Standards
While Nintendo has been somewhat obtuse by sticking to "blocks" as units of storage, they should be commended for making it very affordable to add storage to their systems. Buying a 32 GB SD card for your Nintendo 3DS costs about $20 on Amazon. The same sized memory card for Playstation Vita will cost you around $80-$100, and the space is needed much more on that platform.
Likewise, Microsoft has made it particularly difficult with Xbox 360 to upgrade your hard drive, but by simply not including a hard drive in the console, Nintendo has basically allowed you to bring whatever storage device you want to the table. Sure, it would have been nice if Nintendo had at least provided a small hard drive for digital downloads, but it would have been at the expense of the compact design of the console, and most people would have probably added their own storage anyways.
Personally, I had a 750 GB internal drive that wasn't getting any use, so I bought a wall-powered enclosure and had a USB external drive for less than $30. That's more than enough for downloading Wii U games, unless I buy every single game that comes out.
5. Tangible Benefits: A Personal Preference
As someone who used to collect physical media (in 2009, my wall-length media rack was absolutely overflowing with CDs, DVDs, games, vinyl records) I completely understand the tangible benefits of media collection. There's something magical about a well-packaged product that makes it fun to own, use, and display. Unfortunately, more and more distributors are cutting corners with their physical products by excluding the instruction manual, and making very basic cover art. I bought a Blu-Ray recently that had nothing inside except an ad for another Blu-Ray. If this is what the benefit is for buying physical, then it's not particularly compelling.
I understand, though, I really do. I don't buy CDs anymore, but I will still buy a vinyl record (provided a download code is also included), and I rarely buy DVDs anymore, but I will still buy a box set for my favorite show (provided the packaging is worth the money). Still, personal preference for physical media is merely that: personal preference. I'm thrilled that Nintendo offers both options. There are games I might not enjoy that I'm happy to still buy the physical version of, and that's an option I'm glad to have. More and more though, I'm finding that putting a bunch of plastic cases with cardboard sleeves against the wall isn't any more effective or useful than a nice wallpaper.