I agree the format is dying, but I wouldn't quite call it dead. The reason CDs remain relevant is that the amount of data on a CD still far exceeds that of a typical download.
As technology improves and all the detail of a CD or SACD becomes common to downloadable files, the CD medium will become obsolete and, with it, our big-rig CD players.
This does not mean that the rest of the system becomes obsolete - good wires, amps, speakers, set-up, placement, and all that stuff will still matter just as much. The box where the CD player now sits will merely look a little different. And, it will require regular backup.
For now, though, I would not call the CD format obsolete.