The Death of Compact Disk ???

I was in Madison visiting friends when I stopped by one of my favorite used music stores on the East Side. I also brought in 10 "gently-used" CD's to sell them. It had been a good 3-4 months since I last visited this store and I was in for a bit of a shock with the changes that I saw during the hour or so that I was there. First thing I noticed was that the floorspace they reserved for used CD's was about half the size that I remembered from my previous visit. Secondly, I noticed that the price of the remaining CD's averaged less than $5 per CD with none priced higher than $10. On my last visit, most of the used CD's were priced at $5.99 to $7.99 each with the obscure, rare and out of print CD's selling for as much as $15.00. When I checked with the clerk on what they would offer me for my 10 CD's, he handed 6 of them back and said that he would purchase the remaining 4 for a total of $4. Meanwhile, I had no problem finding 4 "new 2 me" CD's with a total cost of $20. I asked about the lowball offer and the sales clerk said their store was "cutting back" on their used CD section and expanding their Video Game and DVD Movie sections. He went on to explain that they were only focusing on "mainstream" artists and avoiding the rare and obscure releases that were always part of this store's "charm". I asked him about whether anyone asked them about vinyl and he said that happens frequently and that their store on the west side of Madison did feature used record albums.
So, here's my question: Is this the sign of things to come ? A followup question is: Is there added value in the CD format as far as inserts and artwork ?? And lastly: How long before the Compact Disk goes the way of 78's, 45's, 8-Track and Cassettes ??? Let me know your opinion please...
P.S. I still have more than 700 select CD's for sale online at www.half.com so this is of prime interest to me and my cottage business...