I agree and disagree...there will be more people who turn more and more towards digital media exclusively...it will be funny when folks "bust out with thier cd's" like we do with our vinyl now for some sense of nostalgia....
However, I'd like to think there are several people on this forum, if not even more widespread, that like having that tangible product. There is a sense of "magic", for the lack of a better term, when you have artwork/lyrics/pictures: something visual to put to the music you are listening to. Sure, the masses are more worried about the #1 hit and cutouts from a Tiger Beat mag or whatever... but there will always be the folks (like me) who, regardless of how much digital media is available or posessed, will always have a likening for a phyiscal product a few steps over just being able to hear it. Yes, in the end, all that matters is the music...but it's like movies and thier soundtracks/scores: there is an enlightening connection. There is more life to a film with a mood-setting soundtrack/score than a film with no music - There is more life for some people when they have the mood set for thier music with visuals, etc. (beyond just pasting the cover art for the album from Amazon.com after you download it from limewire). It's one step closer to seeing the band live for a lot of people.