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Xbox has reportedly ‘shut departments dedicated to bringing games to physical retail’
(www.videogameschronicle.com)
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Agreed with everything you say, and I don’t have any solutions you haven’t said. I would like to add, buy your nephews, cousins, kids, students, etc physical games. Buy them the games they want, too, not just the ones that you think they should have. Get them used to going to the store to look at games and game boxes. Take them to the retro game store and let them pick something out. Encourage gaming to be more than passive consumption, and try to instill more positive associations with ownership. Avoid lecturing, or trying to create negative associations with digital or subscription products, and just help them share in your passion, it’ll take you a long way.