Physical Sims are easier to move around. So someone like a tech reviewer (as an extreme example) can flip their sim into any device for review and switch back without having to do anything further. With esim, generally the qr code initiates the process but doesn’t actually represent the sim itself, so the sims are non-transferable. You usually need a new esim qr code and you have to interact with your carrier to move to the new eSIM; usually through an online sim transfer process.

Transplant that for people who travel and may have half a dozen sims for various destination locations which can be swapped out for any reason at any time. Hopping between carriers as they go. Landed in France? Cool, just pull out your collection of sims and pull your France Telecom company sim card, and pop it in. No internet/wifi/data/phone call needed.

For me, I use my esim as dual SIM, my esim is my personal SIM card. For work, I’m usually given a mobile number at least, so I take the sim that work provides and drop it in the physical SIM slot and I’m off to the races. If I’m fired or quit, I just pop it out and hand it back to them. With eSIM, they only have my word that is been removed, and they need to transfer it to a new eSIM QR code. It’s just more hassle. With a physical SIM they just pop it into a new device for my replacement, or hand it to that person if they’re bringing their own device to the table… It’s just a lot less hassle.

90% of people don’t travel enough that the former is a problem, or change jobs enough that the latter is a problem. Most people put the sim into their phone and ignore it exists (as long as it keeps working). So for the vast majority eSIM is barely an inconvenience, and most of the work in transferring the eSIM will be done by the carrier employees when setting you up on a new device as part of an upgrade, so the vast majority of customers won’t care or notice.

The main technical argument for eSIM is that it takes up substantially less internal space which can go towards making devices smaller, and lighter, or provide slightly larger batteries or storage or something.

I prefer having a sim as an option, but for the most part, I’m not going to be too bothered if they don’t put it in.