Here is a great link to an article by CNN regarding the potential death of the Compact Disc (CD)
http://www.cnn.com/2010/SHOWBIZ/Music/07/19/cd.digital.sales/
In my opinion, it will be hard to say Good Bye to the CD if and when that day comes. While mp3's and the potential downloads from iTunes, Amazon, and other digital outlets are great, there is a special feeling to a CD.  It might be the packaging, the plastic wrap, or the smell of when you open a CD case for the first time.  Personally, I always enjoyed the little clues and symbols hidden around the CD edges both inside and outside that give a deeper meaning to the artist's album.  Digital downloads are great. You can potentially load up to 20,000 songs or more on an iPod, but doesn't that become a bit bothersome when you start driving.  Imagine all the playlists you have to go through to find that "CD" you were looking for. 

The reality is that the eventual death of the CD may be good for the environment, depending on what the environmental damage on a iPod is and whether or not it is more or less than producing a CD.  We will all adapt to the times, but the CD for as long as it remains will always be valued in my eyes.