You're a bit late to the game, but better late than never. Modern remastering has improved so much that vintage jazz can indeed sound much better on CD, but that's due to the remastering, not the medium as such. It all depends. I still regret selling some mono LPs that would sound killer with my new mono cartridge. But you're perfectly right, e.g. the Mosaic Ellington sounds so much better than the French CBS LPs ....
What are the young jazz fans listening to? Are they taking attention to detail? Because that's what's lost if the compressed files are not transferred properly. There is great potential to the new media - imagine every bit of music being available for streaming, even the rarest stuff, at your fingertips ....