I dont have an ipod nor plan too
I burn MP3s on CDs to listen in the car
for portable, my blackberry with micro SD card can fit plenty of music

Until everyone switches to FLAC, CD's still hold value.
the problem is the future of media will be a closed source world so flac will never become mainstream and music will never be sold in flac.
just look at it now as far as online music sale apple is takeing over and there devices and software dont support any of the open codecs like flac or ogg and they have no intentions to support anything but there own codecs.
it's playing out the excat same way for the next genrations of html and web browsers apple and pressuring for the use of there codec verses the open ogg theora.
Problem being that mp3 and even ogg are LOSSY, and only Flac can provide a true backup of quality audio, from vinyl or CD.
The thing about FLAC is each song takes up 25 mb, I have my Nirvana collection in FLAC which takes a total of 3.25 gigs for 144 songs. My Pink Floyd, which is in mp3, takes up 3.77 gigs for 341 songs.
I love quality but I have to take account of how much hdd space I want to give.