I think the satisfaction of physical media is the hands-on visceral aspect like anything else. Good food and clothes that do the job as an adult, comics and shit you built as a kid, you know? Booze and/or drugs for some. Blah blah, yadda yadda. Like anything else, gets to lose its edge with excessive indulgence (collecting and fanboyism in my personal experience) but in moderation and the right (personal) reasons/applications, making worthwhile and enhancing life experiences...like anything else.
With collections, I don't see it as a statement of taste since I don't even talk about my tastes with many friends with a handful of exceptions. A personal library of sound like a bookshelf is literally a private library. And it's not even really a "real collection," being that with some glaring exceptions I'm willing to rotate the old holdouts out for new wants in terms of selling and trading. It's organic and changes with time, like the human brain. As with memories, you risk losing old ones in creating new ones. It's life, and I embrace it. To me, that's only materialistic in a very superficial sense. If I collected whole discographies of bands and entire label runs, that'd be something else entirely and neither my idea of what makes art/sound a worthwhile experience nor something I even want to have the time for.
I'm not a format snob but I admit holding out for the "real" thing is usually my way. Downloading, even paying for downloads, doesn't bother me, though it's not my preference. Like the contrast between grade-A spank material and actually fucking/getting fucked. There's an obvious choice but sometimes you go with the lesser.
And limited, small-run tapes in 2018? Because it's convenient, cost-effective, and realistic. I know damn well only a small handful of people give two shits for what I do, so I'm not going to put too much energy into "releasing" one thing when I've already started work in some way on the next. Sure, it'd be great if a bigger audience could justify a bigger investment in larger editions and some professionalism, but I'm not an idealist, I'm a pragmatist/realist.