Yes, CDs will become obsolete. There is simply no need for them now. I grew up with vinyl, switched to CDs around 1990, and have regressed back to vinyl since 2005. When Mp3s came out around 1998, they sounded awful to me in comparison to a CD. Now in 2014, with hard drives as big and inexpensive as they are now, I have ripped almost all of my 1000 CDs into iTunes on my Mac into AIFF files. AIFF is the Mac equivalent to WAV files, which are 100% uncompressed, they are 16-bit/44 khz files, ripped right off the CD with nothing done to compress the file. Listening to these files is the same as putting a CD in the hard drive and listening to it, there is no audio difference at all. THIS is why CDs are fast becoming obsolete.
Now, having said that, I actually prefer the sound of analog over anything digital, and records are pretty much all I listen to at home.