Well for one, the PS5 itself will come with a blu-ray disc drive, while the digital only version is exactly that, a digital only version that will not take disc media. This is why there is a $100 difference between the two. One has a disc drive, the other does not.
Yeah, that's literally the difference between the two. The digital only console does not come with a disc drive, it's just a plastic bit of hardware with a digital only system in place. That's why they charged less for he digital version, because of there being no disc drive.
When it comes to performance , it's pretty much the same for both of the consoles , it's just that the PS5 Digital Edition is more aesthetic ,but it doesn't contains a disc drive which resulted in a lower price for sale.