Having a physical item for something based around audio just isn't practical. You can lose a CD, scratch a CD, and for something like vinyl you have to buy a device to play it. It just doesn't match with the times.
Does it sound better? Lots of people would say yes but I find that streaming music to good speakers is just as good as a CD.
Plus it just takes up space and becomes a material possession. I don't have the space to have CDs for all the music I like. Then add on DVDs and my house would be filled up. Not worth it.