I still buy CDs. Pretty much exclusively. I'm a tactile kinda guy, I love coming home with a bunch of new CDs (hunter-gatherer, me), I love unwrapping them, I love looking at the artworks, turning the pages of the booklet while listening to it for the first time (especially if the artwork actually complements the music), I love the sight of a shelf packed with CDs. It's all a vital part of the experience to me which is lost when buying "naked" mp3s.
I've only bought digital twice: One was The Inevitable Rise and Liberation of NiggyTardust by Saul Williams because it was one of these "download free or support the artist by paying 5$" kind of things and since I liked it I thought it was worth the money. Also there was no CD release at the time, and seeing as Saul is nowhere near a big name like Radiohead, I wanted to show my appreciation for taking the considerable risk that came with that distribution model.
The other was Origin of Symmetry by Muse because I had a 5€ mp3 gift code from Amazon which I would have been stupid to let go to waste. The album was 4.99€ at the time so technically I didn't even buy it but got it for free...
mrmarioanonym: But they sound much better and FLAC files aren't that big.
Ever tried to squeeze over 600 lossless albums onto an iPod?