I'll add my voice to the clamour of "well then I won't buy any music". I think I bought one MP3 track from amazon, once. But apart from that, all my music comes on CD.
There's just no replacing the tangibility, or the tantalisingly interesting look of a shelf of CDs. But then, I bet similar things were said by vinyl fans in response to predictions of that medium's death. Enthusiasts might've decried CD (or perhaps, tape) for its lacking the warm, rich, sometimes scratchy sound of a record. And of course vinyl is still, in a smaller way, with us.
The thing that strikes me though is that CDs have special value as a complement to a live performance. Every gig I've ever been to has had a merchandise stall. And they can't really sell downloads there, can they? Not to mention up-and-coming bands who may be able to strike a deal for a studio session, and a CD production run: for to flog from the back of a van in the pub car park after their gigs. I doubt many of these will see uploading their work to the itunes store, for a meagre pecentage of the pence per track it's sold for, as a good alternative.
And finally of course many CD purchases are made for gifting. It really wouldn't be the same to unwrap the paper and find a plastic gift card for an online download in there.
No I think there will always be a place for physical media. And since CD is so prevalent, and so widely accepted as a good format, why change it?