Yes, because much of it has already gone to download and there are many mainstream formats - ogg, aac, mp3, flac, wma, etc, etc, etc, etc, etc
Some of these are compressed formats - lower quality than original but still good and some are lossless - compressed without loss of quality. A better question is why would you ever want 5000 CD's when you could have 1 hard drive /flash device with every song on those CD's but compressed with no loss of quality? The music then becomes more transportable, easier to access and more resilient - CD's scratch and CDR's degrade.
Consider this, the next "next" gen consoles (PS4 / Xbox 720) are, according Sony/MS not going to use physical media. Trust me, the days of "physical" media are limited.
Keep in mind, I am referring to mainstream media (for the general public). There will always be special cases and users who don't fit in to the norm. This is just one man’s opinion, I could be wrong.
Regards,
Sean