Ok, this seems nuts to me as I sit here with 8 gigs of music on my hard drive. (currently listening to KOALA / Eternity is Past on Phantom FM here) Kids are snapping up vinyl albums. Seems indy artists in the UK are releasing new music on 7" singles. Kids LOVE the things. They like going to the record store too, instead of downloading from Gnutella.
Thinking back to the dark ages, I remember the first time I saw a music CD. My comment at the time seems to have been somewhat prophetic: "Gonna be hard to sort your weed on that little thing." Kids still like album covers. Amazing.