i think we are witnessing a growing dichotomy in the purchase and use of digital media. one group has invested in high-quality sound system(s) and CDs are the highest quality form of music you can purchase (other than SA-CD and DVD-audio of course, and vinyl some would argue.) on the other hand, you have the group that wants to purchase tracks one at a time and listens to them on their ipod/laptop/docking station and the sound quality of downloads is 'good enough'.
I don't think I agree that "audiophiles" are sticking to CDs for this reason. Losslessly compressed audio isn't really constrained by space anymore, now that we have 2 TB consumer hard drives, and it retains perfect fidelity. (And there are multiple P2P communities specifically focused on providing high-quality lossless downloads.)
