I prefer retail, but if digital is the only option, I get that.

Honestly, it depends. On my PSP, I prefer digital, since UMDs are pretty easy to brake. I've never broken one, mind you, but I always have that fear that it'll happen. Plus, I bought it pretty late in the system's lifecycle, so maybe I feel obligated to give some money to the publishers. Also, the load times are waaaaaaay faster.

For everything else, however, I'm a retail guy all the way. I like how if I can't stand a game, I can get rid of it and get some money back. If I like the game but want someone else to play it, I can simply lend them my copy. Plus, it's cheaper, at least for the most part. Yeah, there are some obvious exceptions (look at Atlus sales on PSP versus retail, or Steam sales), but for the most part, I prefer having a physical copy.

I too go for retail, but i'm beginning to run out of room....

I like retail the most for home consoles but I like digital best for handheld consoles. Games for handheld consoles are just so easy to lose track of and for digital you don't have to carry the game around at all times. For console I don't mind because the games are big and easy to find if lost.