As of about 1 year ago 150,000,000 iPods have been sold and last June hit 5 Billion music downloads, CD's are obsolete and CD players will fade away. Think film cameras, sure they won't go away completely but the landscape will change dramatically in favor of a fully digital distribution model. The only reason I buy CD's is access to the high resolution files to rip to my hard drive.
Unlike my CD player my server based system allows access a 9,000+ song library anywhere I have access to a wifi network on my iPod touch (which also serves as an iTunes remote control) and most of the lossless library is on a 160 GB iPod Classic for the gym, car, airplanes, etc. At home I have a USB dac on my main system, a Squeezebox in a bedroom system.
No need to be defensive of CD players or critical of server based systems, as always in this hobby, YMMV