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Like ~K+ said, it depends on your lifestyle.
I have an iPod, but I still buy the CDs that come out. Like last week I bought both Ayu and Momusu singles. It doesn't phase out CDs, because even though I download the single over here, I LOVE CD quality stuff. The only way you'll phase it out is if you are active like me, i'm a student, so we can listen to our iPods and CDs during breaks, and when I walk home from school. Then when I go home, I listen to the CD that has REALLY high quality.
I reccommend the iPod if you change moods easily, or you have a WAY varied taste of music. For instance, I like to listen to about seven or eight different artists, so instead of getting their CDs (super expensive!), then I just bring my iPod, and change the songs when needed.
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