Contrary to popular belief, CDs are not going away yet... at least until we solve underlying problems with digital music.
Part of that is a looming digital music shakeout that some are predicting, and part is DRM that doesn't work:
Ninety percent of his customers own iPods, according to Cullen, and many call in after first buying the system, wondering where their iTunes songs are. But after the company explains it is Apple’s DRM that prevents the file from playing, users universally respond that they will go back to buying CDs that they can then rip into non-DRMed audio files, Cullen said.
I know I sound like a broken record, but I'm going to say it again anyways: the average consumer is willing to pay for content, but they want to feel like they are getting something of value in return.
Part of that perceived value is the ability to consume the content in ways that the consumer, and not the content owner, sees fit. At the end of the day, legal interpretations aside, that's how the consumer defines "fair use".
Digital music has the potential to (in Fred von Lohmann's words) "grow the pie" for everyone - we'll have more innovation, more money for both content creators (and publishers) and technology companies, and happier consumers - and yet the RIAA and others keep managing to find ways to hold it back.
Maybe we should take up a collection to send iPods to a few more senators (or at least send a video iPod to Senator Stevens).