I will never purchase another CD, unless it is at a band's merch stand.. and then I likely won't even open it -- it's just to support a band on tour when ever dollar honestly counts (if you've ever been on tour you'd know or have close friends who tour just ask them).
In my room, I have a decent set of speakers with a line-in for my 160GB iPod.
In my car, I have Cadillac speakers with a line-in for my 160GB iPod.
In my pocket, I have a good pair of earbuds with a line-in for my 160GB iPod.
In my desk, I have a 1TB hard drive filled with music linked to my 160GB iPod.
At no point in my life do I ever need a compact disc. It is a waste of time to convert/tag/organize from a compact disc. It is a waste of resources to print, package, ship, and distribute a compact disc (omg go greenz).
I understand not everyone is in my situation, so this isn't a "death to compact discs" .. but to be completely ignorant about the plethora of positive things completely digital music offers is crazy. The iTunes-model isn't perfect, but neither were CDs during their first few years. iTunes and Amazon and the other big players are working to improve on a constant basis.