The only fault I can find is that Paul may not have done much research, before his daily post. He may have received it from a trusted source.
It is not the first time I had heard about CD rot. But I always figured it had more to do with non audiophiles who don't handle their media with the respect that we do. CDs used in cars, stuck in those visor sleeves, leaving them laying on the dashboards, exposing them to sun and heat. Oily fingerprints, on both Cds and LPs.
I have great respect for Paul McGowan, they run one the best customer service oriented businesses, I know of. I do believe a player is in the works, but they just recently released a new SACD/CD transport, so he certainly is not telling anyone it is time to move past physical discs .And it does tell you what the problems are. The OP's headline, reads like a tabloid headline, you'd see in a grocery store check out line.I read that post the day it came out, and I didn't find it overly dramatic, the sky wasn't falling.
If you have any CDs or LPs that can't be replaced by downloads or remasters, then it might be wise to make a few safety copies. If you have a decent AD converter, you can digitize LPs that will sound very good. To me it is one those mysteries, why don't commercial CDs sound identical to the master tapes, but I can digitize an LP, that sounds just like that LP, and I can remove the ticks and pops when necessary.
Paul McGowan is certainly not a flake. His enthusiasm is genuine.