This may be something of a hijack if you don't have a PC. However if you do then there is something you can do to drastically improve CD sound. First, pick up a newer used higher end universal player (I picked up a Pioneer Elite 59avi on Ebay for 500 bucks and you can get them cheaper than that). I rip my CD's to PC using Exact Audio Copy (free download) then burn them to DVD using Cirlinca DVD Solo (35 bucks) at either 24/96 (two hours to a DVD) or 24/192 (one hour to a DVD). The sound improvement is substantial. In fact the Pioneer reads them as DVD-Audio discs and outputs both analog and digital (to my NOS tube buffered DAC). Also look at controlling vibration and RF/EMI on the transport.
Direct PC audio (playing sound files from your PC to your system via Squeezebox, etc) is the next step from this. I'm just waiting for it to mature. It's getting close. With terrabyte home hard drives coming soon storage is not a problem. Using FLAC (a lossless encoder) you can compress audio files to fit large numbers of them on current hard disks.
Regarding vinyl, after attending HE2006 and hearing many systems featuring it I found no compelling reason to go back to it. Having to buy new vinyl (the audiophile pressings run upwards of 30 bucks retail) and hardware while ignoring or trying to sell my 2,000 CD's and digital front end makes no sense. Vinyl is having something of a renaissance but to me it is still a dead end. You can rip your CD's and upsample them to improve their sound. PC audio eliminates the biggest digital problem (transport error and jitter).
Plus, digital is far more convenient. If I want to sit back and listen to 2 hours of music without getting up every 20 minutes to flip a disc I can do so. If I want to listen to "Deacon Blues" fifteen times in a row I can do that by pushing a button. Yes, you could go back to cassettes but then you need a high end deck and high quality tapes to make ones that you can enjoy but still fall well short of good digital.
To each their own. Hope this helps.