I'm still buying CDs and sacds (at bargain pricing) mainly because I want to own it, and I work on a computer all day. The last thing I want to do when I come home is boot up another computer. Will they eventually go away? Probably, but I won't be around to see it.
I own the Yamaha CD-S2100 mentioned earlier. It is a superb unit with exceptional build quality and sound quality. The built in DAC sounds great and allows for USB input so it's got some future proofing built in.
That said, one of the best improvements in my system has been the addition of a Musical Paradise MP-D2 tube DAC. Check out some of the threads on audiocircle on this gem of a unit. It offers tons of flexibility and customization by allowing for tube swaps and output capacitor swaps.