Agreed, It appears, from all legal accounts i have read referring to this, completely frivolous. Yes the prices are silly as digital but the price is stated and offerers things that are not available with physical such as preloading and activated as soon as its released rather than having to go out to buy or queue or use fuel etc. Digital also offers no hassle gaming for the price, pay, download and play no looking bout for the game box, no getting up to put in console etc. Sony even made a Digital Only version of the PS5 that was cheaper because people knew games were more expensive from the store but were ok with that for the convenience.
Not only that Sony has to house the data and infrastructure to distribute this content, which on release day if its a popular title, will command a huge amount of bandwidth.
And finally iirc i believe that most/all versions of Sony consoles are sold either at cost or a loss and are subsidised by games/content purchased from the store.