Hey Mikel,
It’s been a while!  

Good question.  Quite honestly, I don’t think the CD is going anywhere.  With the stratification of artists these days (i.e. independent artists having access to pretty much the same tools as the big boys), many artists will still choose to put out CDs.  However, vinyl and digital sales will continue to gain market share.  Digital sales is purely allowing musicians to get their music to their fans in the cheapest and most accessible form.  Fans then can burn CDs, put them on their iPods, or simply listen on their computer systems.  Vinyl allows for better artwork, thus allowing artists to more completely see their artistic vision through.  

The fact that major labels are abandoning the CD means very little to the industry, because the majors have been lost for years now.  The independent music scene is thriving.