I don't think the general population is considering DVD players as an evolutionary step up from CD players in delivering redbook digital content. The music server (i.e. music delivered off a hard disc, be it iPod, Roku or PC based music server) is probably what has moved most CD players into thrift stores. Well, that and dead lasers. The perceived step up in convenience is similar to that promoted by the CD makers vs. the LP when CDs first came out. Luckily this time the sonic quality can actually improve with the change in the medium. I was caught quite off guard by this improvement in sonics when I first experienced it myself several years ago.
That said, I do still have a few friends who seem to be pursuing the latest gadgeted-up player. In light of what I heard coming off a server vs. coming off a CD/DVD transport, I can't say I think that is money well spent. But I imagine that like turntables and yes, even reel to reel decks, there will always be a niche market for a high end CD transport. And certain CD players will become cult worship objects just like certain Garrards and Studers.
