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Not quite a museum piece, but the situation is definitely strange: on one hand, you almost never see discs in physical stores, but on the other hand, they haven't disappeared and there's still demand for them. I noticed this when I was hunting online for an old collection of Soviet cartoons for my nephew - it turned out that marketplaces still sell this stuff, and at pretty reasonable prices too, not collector's prices. Apparently, manufacturers keep production volumes low because it's not profitable to abandon this format entirely.
The main reason, of course, is streaming - it's more convenient, you don't need to download or store anything. But discs remain valuable for people without internet access (or in areas with bad coverage), or who simply don't trust the cloud and want to have the content in their hands. Plus there are collectors and people who just aren't into online subscriptions in general.
It seems to me that discs will become a niche product in the near future - they won't disappear, but their market share will drop significantly. Like vinyl records: not many people listen to them, but they still get released and prices hold up.
Probably not quite a rarity yet, but yeah, they're definitely disappearing from stores. Most people are switching to streaming these days - it's just easier, you turn it on and watch, no discs to deal with. That said, if you're really into something specific or, like, your internet's not great, you can still find used DVDs online or at flea markets, but you'd have to dig a bit harder for them.
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