Will CDs go the way of vinyl?

According to the Reuters news story CDs predicted to go the way of vinyl analysts are predicting that music downloads will be the most popular way for people to purchase their music in the future relegating CDs to the scrap heap. Am I the only one who is not too crazy about entrusting my entire music collection to my computer? Sound quality aside, I like to have something tangible to play on my stereo, with liner notes to read while listening. I consider MP3s to be a convenience but only as an addition to my CD collection and not as a replacement. Now, downloads are probably going to remain popular with the public at large but what happens when the record companies and their technical partners change their codec, the underlying format that the download is coded to (like MP3, WMA or AAC)? Or what happens when your computer crashes? Or when the record label has decided that you have listened enough to that particular track and that it is time to renew your “subscription” to that song? I think that indie labels have the opportunity to further differentiate themselves from the majors by offering to the public CDs that are of higher fidelity and quality than that of a download while stressing their selection and inherently better musical taste. Labels like Bomp and Not Lame could perhaps offer custom downloads but I predict that their customers would be more interested in still purchasing an “album” as opposed to a bunch of disconnected musical files because they understand the value in both the record company’s musical taste as well as the physical product that they are buying. I certainly hope so.
UPDATE! Coolfer makes a good point about the numbers cited to reach the supposed conclusion that CDs are doomed in Innumeracy Gone Wild. I too could not figure out exactly how 1/3 of all downloads by 2008 could equal the death of the CD but hey, my math is not exactly up there so I’ll leave it to the experts (and my son) to crunch the numbers!