So in summary, CDs still can play a useful role (including coasters for drinks as mentioned) but sound quality should not be an issue. I still have hundreds of CDs but all are ripped to music server and I play them only from there via Roon these days (I used Plex in the past for many years). They are useful as a backup in case I should lose files in the future and there is not an option to stream some of my favorites from a high res streaming service (I use Qobuz).
Physical media including CDs and vinyl also come in packages with supplemental material that is not available (today) with streaming equivalent. As long as I have internet access to read up on whatever topic I might choose, I tend to not miss the supplemental info in records or CDs much. I can’t remember last time I went to a CD to find out something about what I was listening to. I do go to records however on occasion for that. 331/3 vinyl still retains the unique advantage of being a larger format that also often also includes interesting supplemental information and materials. CDs are smaller and less useful that way, though box sets and newer expanded editions make an effort to compensate for that in cases where the market interest supports such products. Demand for physical media is likely to not go away totally for quite a while yet, but these days it all plays a distant second fiddle to streaming and all the advantages and conveniences that go with it.