I just don't see this in my area. CDs are dirt cheap and plentiful in every store I go into. If they were gaining any traction, I doubt I would see so many rare CDs sitting in these bins with $5 price tags on them. I guess you could say that Jazz CDs are rising as a way for someone to acquire a large collection cheaply, but that doesn't seem to be the way it's going.
FWIW, the argument that today's younger music fans aren't willing to buy equipment and have an actual stereo setup doesn't hold water when you consider that they are also the generation that has supposedly caused a resurgence in LPs.