Been collecting music since the late 60's and early 70's, so vinyl was king back then, and later when cassette decks(Nakamichi) took that medium to a higher level, I was doing a lot of recording of my LPs for the sake of saving the wear and tear on all of my albums, a very significant investment at that time. When the cd came along, I was a bit apprehensive, my tastes were a bit of the popular track, and I was concerned that "my" music was not going to make it to the cd.
To my surprise many of my favorite artists were getting formal transfers to the digital domain, so I went and found a new Magnavox cd player, with dual 16 bit D/A oversampling, it still sound great today, so as time passed the CD became the go to format, I couldn't argue with the convenience and durability of the cd compared to the LP, eventually I came around to the .flac, wav, .ape, as well as other lossy formats, having a DAC interface with a desktop pc really gives one a state of the art storage and organizing system. Also, the artwork can all be stored and viewed via monitor which sure beats all the worn out album covers and miniature cd sleeves, which my almost 57 year old eyes can't see without my cheaters.
As far as sound quality goes, no question the digital sources have come a long way, and are some of the best these ears have ever heard, If someone were to ask me to put a true high fidelity recording on to demo my system, I would offer some .flac recordings of Telarc, Chesky, Sheffield Labs, CMP, or some of the other audiophile labels, some of those recordings are so pristine and well defined that they can make most average systems sound great, and great systems better.