Whether or not people can hear the difference between CDs and SACDs (and high-res FLAC) is hotly debated. (And frankly the issue has been beat to death, and therefore this thread might get moved by a moderator to “Audio Controversies”.)
Nonetheless, I’ll wade in.
My opinion is that whether or not hi-res deliverables (e.g., SACD or hi-res FLAC) sound better is something that each listener has to decide for himself or herself, based on the music they listen to, their hearing, and their hi-fi system. (My opinion is that hi-res recordings are most relevant for classical music played via a high-quality hi-fi system.)
And it’s a complicated topic. Differences in sound quality between a CD and a hi-res consumer deliverable can be due to differences in mastering, and/or the bandwidth of the deliverable.
If you’re inclined to let experts think and listen for you – which I’m not – you can find statements from AES on both sides of this issue. Here’s one example that says that the consumer deliverable does make a difference:
http://www.aes.org/e-lib/browse.cfm?elib=15398 (And a 2007 AES report states that SACDs are often mastered better.)
I would turn the question around: Why are CDs still being produced? CDs are 30 year old digital storage technology. (Would you buy a PC with a 30 year old disk drive?) Assuming that the prices are reasonable (which sometimes they aren’t), I want to invest in the best quality consumer deliverable.
Then there’s the issue of CD’s relatively limited storage capacity compared with newer technologies. I can’t understand why box sets are still being issued that contain more than 50 CDs, whereas they could be delivered on a few Pure Audio Blu-ray disks. (E.g., Solti Ring cycle: 1 Pure Audio Blu-ray disk at higher res, or 14 CDs at lower res. The remastered Maria Callas studio recordings were released earlier this year on 69 CDs – why not a few higher-res Pure Audio Blu-ray disks instead?)
I think the future for hi-fi recordings is hi-res downloads and Pure Audio Blu-ray disks (partly due to sound quality, partly due to storage capacity). At the same time there are good deals available on SACDs, such as the RCA Living Stereo series of remastered classical recordings from the 1950s and 60s, which often have excellent sound quality. (See sa-cd.net for a listing of many hi-res recordings, including SACDs.)
Reasonably priced good quality universal players are available, such as the Oppo units that play MP3, CDs, SACDs, Pure Audio Blu-ray, hi-res FLAC, DVDs, Blu-ray video, etc.
Bottom line, if you have a universal player you can obtain whichever recording has the price/performance ratio the best suits your needs.