Physical media is a very niche market at this point targeting old school audiophiles. It’s the reality ...
Intuitively, that would seem true. But if you go visit a record store or two you'll likely find younger people outnumber "old school audiophiles." Further, if you consider that brand new record pressing machines are back in production, and pressing plants have been acquiring them and adding capacity, it seems unlikely they'd commit to such an expense for a customer base that's dying.
Vinyl album costs are in double and triple digits.
So?
If you are a serious collector and add up your yearly spend it will begin to look like one hell of a streaming front end if you spent this money on components.
But it isn't an either/or proposition. An audiophile can buy physical media. And stream. And enjoy both at very high fidelity. And talk and chew gum at the same time.