I personally can't stand to buy music as a download! I might just be old fashioned but when I pay for something I like to be able to hold it in my hands, see it, feel it - basically have something "real" instead of some file on my computer. I love the artwork of album covers and the booklets with the lyrics. I also really liked the phase where a making of DVD was often included with the album.
I also listen to a lot of bands that are definately not well known and I feel like I'm supporting them when I buy the whole album. I'll just have to put it in my CD player and wait and see if all the songs are to my liking.
Another point for CDs, at least here amongst collectors, could be the fact they can turn into a....wait for it....collection. I know this is a "toy" collectors site but plenty of us have comics collections, DVD/Blu-Ray collections and what not. I love my CD collection. There's some nice gems in there which definately aren't and prob. never will be on iTunes and with a classy display also a CD collection can look like the dogs bollocks