Some of us had a hard time giving up 300mm discs of (usually black) PVC, and after finally embracing 120mm discs of polycarbonate have a certain attachment to the teensy little booklets and fragile cases.
Plus if I'm away from home and someone gives me a CD as a gift, it's nice to be able to rip it immediately and listen to it through my Pandora's awesome audio hardware, then push it up to my music server when I get home.