compurocker
rocking out
This is exactly what I do too. Zune as well.
Same here. Zune for me (and my wife) too.
I keep my CDs in binders and until recently had been keeping the jewel cases in storage boxes in the garage. Recently I took all the covers and liner notes out of the jewel cases, put them in storage boxes, and recycled the jewel cases.
I also have Zune Pass which I use like a rental service. I used Zune Pass to get a lot of PPX music ahead of the event, then bought the CDs at the merch tables. There's a lot of stuff Zune Marketplace doesn't have (a handful of PPX and PPXI bands aren't on there), but for what it does have I wouldn't give up my Zune Pass for anything.
[edit] And regarding my nice big stereo in my house, I don't place CDs on that either. I can stream any CD I own out of my Zune software over my wireless network to my Xbox 360. It's a glorious thing. I could just plug my Zune or my computer into my stereo. But the Xbox method has worked very well.