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This means you can't pass the game around to your friends or sell it afterwards, which completely ruins the purpose of physical media imo. I mostly play PC these days so this doesn't affect me, but it's a disappointing direction for console games. At least they could've used an empty disc that has proof of ownership.
EDIT: Bethesda has confirmed that only the PC version won't include a disc. Physical versions of Xbox will include a disc. Whew.
If they’re calling it a physical copy it should be a physical copy of the game data. Having a case to hold a code is a ridiculous slap in the face. And a waste of plastic
Unless (and I'm not saying it's the case here) they make sure took indicate it's only the code and include swag like physical maps, a game booklet, or limited edition collectables with it. Then I could see it.
Otherwise it's just misleading advertising