I did both (makemkv for ripping most media, Oppo UDP-205 for playback of media I couldn't properly rip, ie. 4k Dolby Vision content), although these days I have enough online storage that I just do a full decrypted backup of the 4K DV discs now and store the whole thing online, which the Oppo can play back just fine. (And things are getting interesting with respect to storing rips in .vo files and retaining DV while not suffering the audio quality loss that containing the stream in MP4 forced on you.)
Playback of ripped material will be indistinguishable from what's on the disc, assuming you didn't transcode it into something else as part of the rip. MakeMKV is a really fantastic piece of software for reducing wear-and-tear on your physical media, and using something like Plex, Emby, Jellyfin, or Kodi to index it all gives you your own personal Netflix of sorts, it's really quite magical once you've gotten things set up.
As for the future: no doubt it's going to keep getting harder to buy physical media, but there's no replacement for a physical copy of something that's not popular enough to remain on the streaming services you subscribe to. There's a lot of anime I've only been able to watch because I was able to either order a physical copy from Japan (not always possible) or find it on the high seas, and I don't have particularly obscure tastes, it's just that there are no north american distributors or streaming licensees for it (too old, not popular enough, licensing too expensive etc). So I've become a bit of a hoarder when it comes to physical discs, particularly for the weirder stuff I enjoy, and don't see that changing for any streaming service.
(See also Neddy's comment about multichannel; a lot of streaming services will butcher the audio, and if you've ever had the joy of using either the Funimation or VRV/Crunchyroll apps, they're also a special level of streaming hell. It doesn't matter if the streaming service has the content you want if the app is broken.)