As spadgy of Shmups Forum puts it: A physical release of CCWI would be nice, but I’m just glad the game is getting released at all, even if it means a digital Steam release. Saying things like “the game should get a physical release instead of a Steam release” is pretty inconsiderate of its target audience; the purpose of the port is to get the game out to Western players, who are not able to play its arcade counterpart.
You have to put it this way: Physical releases outside of Asia are dead. Not everyone, or even a decent plurality of Western players, are willing to order and wait for a physical copy to arrive in their mailbox. We live in societies where convenience is considered a very high priority, and the process of getting a physical copy has an obvious lack of convenience compared to digital content delivery.
This is to say nothing of how some countries deal with imports; I have friends who have to wrestle with customs, including paying obnoxious fees, just to get their goods to their front doorstep.
Plus, I’m sure Yotsubane is not that big of a reverse-xenophobic asshole that he won’t put out a physical release in Japan, or at least on a client-free, nihonjin-friendly service like DLsite or Playism. Even so, we’ll just have to wait and see what he says about a Japan-domestic release.