The idea that CD's are dead is really stretching it... Yes, sales are down - but lets look at the contributing factors = we are in a depression (yes, I said depression) and have been for some time (do you really believe the propaganda on TV?), MP3's have diluted the market considerably, and lets not forget that current music leaves a LOT to be wanted...
We are FAR from digital audio being able to supplant anything - no universal format has been agreed upon (need we remember VHS/Beta and SACD/DVDA), high-speed internet access in the US is only somewhere around the 40% mark, not easily transportable, not durable, no medium or standardization yet for real store purchase, and on and on.
Even though each of us may have our favorites (CD, digital, vinyl, tape, ect) and our own personal opinions, the fact is; until something is created that will be universally profitable (like vinyl, cassette, and CD) we will continue to be in this state of limbo (no clear winners, and the continuance of "fads" coming and dying) -- the reality is = nothing truly matters but profitability.
Now, we can speculate that the next universal medium will be digital based, but right now, at best, we can only guess at to what it may look/sound like.
until then (years, if not a decade from now) CD will remain viable...