See, I fall smack dab in the middle. I used to think owning the CD was a must, but recently, with all the burned copies of things floating through my life, I couldn't care less. In truth, if it is a CD I really want, I'll buy the real deal somewhere. Otherwise, i'll try new music, or fill in my back catalog stuff on burned CDs all day. Though, it does make my CD collection look less impressive. and isn't that what its all about anyway?
I swore I'd never pay for music over the net. But I did just purchase the sigur ros ep. $3.00 for an ep makes itunes worthwhile. And I agree with Markie, to find a hard to get single, it makes sense. And an album for $10 is still cheaper that anything this side of a used CD. I just don't care about the booklets, they are often lame anyway.