From my personal experience, I have to see technology as a positive thing. The upside is that greater exposure (even if it's in an "underground" way) is allowed for metal through the internet. Without ANUS, I wouldn't have been exposed to all this glorious music that I love now. I heard Nightside Eclipse as well as a result of someone on another forum a long time ago recommending Emperor, and then finding ANUS opened up the gates for the best of metal. Thanks to downloading, I can hear alot of material I otherwise would not be able to.
The downside is that this ease of distribution, as was mentioned earlier, creates a tidal wave of mediocre material that wouldn't exist if such an easy way of distribution and production didn't exist. For the hessian, who as far as his ends are concerned, does not care what the average idiot is up to, I think the advantage of the exposure of metal to hessians in waiting is a big advantage.
In terms of the physical medium, I've always preferred to maintain a CD collection, although lately I've been transferring alot of MP3s to CD-Rs. I have my trusty CD player and my medium of choice will be CD. I think there is a specialness to the CDs I've actually purchased, however, both in sound quality and in the fact that I have the complete production as the artist intended it. So I agree in the superiority of maintaining a collection of physical objects.
And NEVER just have an electronic collection. Electronic devices are far too unreliable for that to be an intelligent way of keeping your collection. We hold high our music, and putting it at such a risk is disrespectful to our collections.