The simple reason is: picking things is annoying. Organizing physical objects is even more annoying, especially if they are bigger. Then you need more physical objects, to organize the physical objects you use, this takes up even more space. And physical organization is also very limited. You have no database, no dynamic filters, no metadata... At the end, having a tangible thing wears off very fast and just becomes a burden.
A lot of people in the retro gaming space have the conflict you describe. On the one hand, there are a lot of games. Like, a lot. Some (many?) games have multiple versions even! And this is without talking about mods and homebrew.
On the other, there's something deeply "unmagical" about loading up a huge menu of games. Even if they're organized in some way (console, genre, studio, whatever), even if you include box art and info, it's simply not the same experience. Most retro gaming channels I watch on YouTube talk about this phenomenon--mostly in the context of "why do you have shelves full of games".
Different people will think different things about this. I have a 77 square meter home (~830ft2) and like, I'm not fitting all the games I ever bought in this place, let alone all the albums, books, etc. I have flash carts, hard drives, and a kindle keyboard v3. I kind of chalk it up to "life is a beautiful struggle". Friction is good, actually, it enriches life, and these kinds of little agonies are fun to just discuss and find common experience over.
