Mitch, thanks for starting this thread. It's a topic so many of us think about, so it's refreshing to read everyone's slant on the issue. They are many, and they each make sense -- to someone -- sort of -- which is why I think it remains such a 'sticky' problem.
And though 'what to do' with large vinyl collections represent the most widespread concern, it's not really just a 'vinyl' issue is it? I mean, think of those 'digital only' folks who are currently wrestling with: Should I just put all my CD's on a server and get rid of the software, etc? And it's the same I expect for those in to 78's, mono LP's, R2R, cassettes, and (who knows?!) even 8-track!
Recently, about to enter my eigth decade. I thought, maybe there's another way to define this 'problem'. What if I say, as a personal policy, there are no "old formats"? What if instead, I take the position that; "the music (or performance) is where I find it, or have it, in MY collection", no matter in what format it happens to be?
Suddenly the choice/decision is what it always has been for me, namely; "What music or/performnce do I feel like hearing right now?" I don't expect everyone to see it this way, but it works for me and has eliminated much of the anxiety about what to keep and what to pitch without feeling bad about it, regardless of format..
BTW, I have nothing against background music or shuffle-play (I call it "chewing gum for the ears") but if that's all I need at the moment, I (still) have radio; and now internet streaming, XM, and of course making one's own mixes -- whether on a CD, iPod, server, or (God forbid!) a cassette ;--)
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