Even with disc games you have to store the full game on there, so I don't think it's much more of a hassle. Keep all the games you'd ever want to play with friend installed, and games you might come back and play for a weekend, ready to download...
I would say it's a different approach, not a better or worse one.
It's most definitely worse. No doubt about it. Unless somehow you don't value your time,
In fact, it could be up to hundreds of times worse, if you define worse as how much more time it will take to install all of your games and depending on how slow your internet connection is.
Regardless of blurays needing to be fully stored on the HDD, it's still much better to have them even if you never sell your games (which I don't).
Even deleting the bare minimum amount of games just so you can make room for a new game or 2, the benefit of bluray is still greatly appreciated by almost any gamer who values their time because it really is that much faster and more convenient.
A bluray game takes a mere fraction of the amount of time to install that a digital game does.
Even on the fastest internet connection there is, bluray is always at least 5 times as fast to install the game.
So like I said, having to install a whole library worth of digital games would be horrible, and I feel sorry for anyone who has to do it, but it's really their own fault for going digital
I've gone through it multiple times on PS3, and believe me, I would've killed to be able to install each game at the speed PS4 does it with bluray's
