To echo everyone else....yeah, I used to download music in the Napster years, back at uni. Right now, I only buy odd songs, here and there, off of iTunes (if there's that one song I must have). I use Limewire rarely and mostly for what I can't find on iTunes. I still prefer to buy regular cd's, though....I get the wonderful artwork and booklets, which I love. Plus, I can rip them into whatever quality I want, whenever I want. As other people said, cd's also serve as an archive.
And actually, cd's are some times cheaper than buying on iTunes or some other source (legal sources, that is). You can buy a typical used cd for less than $10. For new (popular) cd's, I sometimes buy them off of BMG. For example, they had a recent sale where all cd's were $5.99 including free shipping. I also go to Best Buy if a cd that I want is on sale: read $9.99 or less. Again, all cheaper than purchasing an album from iTunes.
I love iTunes, but I want higher quality, cheaper prices and more non-US music (Asian, European, etc.). Then, I would be more inclined to buy from there. However, I still prefer having a physical copy to fall back on.