Just to add to this - the availability of compression-free downloads has also been increasing rapidly along with the availability of vinyl. In the end, it comes down to the preference between accurate reproduction and vinyl reproduction (for the purists/audiophiles) and the CD covers neither of these to any extent.
Funnily enough, I'm one very few new generation guys who can operate a tape machine. I'm talking about my generation at University. Right now I'm doing a degree in Music Technology and whilst there are a few of us who can operate tape, at college it was altogether a different experience. Give it five years and I suspect that all my compatriots who go into the recording industry (still don't know if I want to end up there) ought to know how to use tape.