Thank you Mr. RIAA ......
1. There aren't CD Blanks... just plastic pellets
2. CDs can/do go bad over time.. CD-Rs are worse than pressed CDs though..
3. Hard drives aren't forever either..
Sure but hard drives are sealed and, I would argue, more reliable storage than CD's. At any rate, none of it is going to last forever... We'll be replacing all our CD-Rs and other removable media soon.
I think we'll see a lot more of non-removable solid state (flash) memory. Removable media have decreased in usefulness, I think, since the growth of broadband. More devices like iPod touch will surface, but also with the ability to purchase and stream music wirelessly between licensed devices... say from your LAN to your iPhone.
A few years ago I stopped buying CD's, now I've stopped burning them, and pretty soon I'll probably stop storing them locally on portable devices... instead opting to stream them over high speed broadband and wireless (e.g. WiMAX) technologies. I really think that's the next wave.
And just to keep this on topic... LED ZEPPELIN RULES!