I can't believe I'm saying this, but I'll be sad to see the CD go, for the audio quality issues noted above. A WAV/FLAC site with a deep catalogue like Itunes would be wonderful. My CDs sit in storage, taking up space, long since moved onto a hard drive.
I've been cherrypicking iTunes for the last few years, trying to upgrade some of my lower quality MP3s (some of them are 64 kps, some are 96 kps, so even 128 kps is an upgrade). With few exceptions, the CDs I buy now are reissues that are true remasters (from source tapes) of albums I know I will listen to a lot over time (e.g. some of the Van Morrison reissues). Last year I bought five.
Recently I've been using Aeroplan points to download from their music site - MP3s, but 320 kps usually, so a bit better than Itunes. Not as deep a catalogue, but surprisingly broad. No DRM on Aeroplan MP3s
http://music.aeroplan.com/default.aspx