>>17
Some people are fed up with prices being too high. Economics.
Besides, there are already several different media vying for CD's crown. I doubt these media will be as widespread as CD was, gadgets like iPod being one reason, but they'll be there.
Remember, not everyone is like us. Until everyone can successfully use a computer and use the internet (which is no mean feat), physical media will remain. People who can use the internet also can use physical media. The reverse isn't necessarily true.