I think CD's will stay around for awhile. I still buy some CD's, as do those who care about getting the highest quality (save SACD/DVD-A). Some people haven't moved on to downloads, which I think is good, since iTunes' 128kbps crap doesn't cut it. I think enough people HAVE moved on enough that developing a new technology to replace the CD wouldn't really make much sense.
Trent Reznor is starting to do some interesting things. Similar to what Radiohead did with their last album, Reznor and Saul Williams released multiple versions of Williams' new album in varying bitrates for free or a low price. Free for 128, 5 bucks for 320 or FLAC. The new Nine Inch Nails album is going to be released physically and digitally. Reznor has become a pretty big proponent against the recording industry's price gouging and refusal to adapt to what's going on in the world in regards to how people get music.
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