Last CD I bought - just last week - was the Traveling Wilburys Collection.
Although I do occasionally pay for and download albums from Napster or iTunes (I never use Limewire, on account of the fact I'm not a thief) I prefer to get the CD as I like to have something tangible. I'll only download albums is they are at least �2-�3 cheaper than the CD. For the sake of �1, I'd rather have a CD and booklet.
It's the opposite with singles - I'll gladly download them, as CD singles strike me as tacky, grotty, wasteful little objects.