I do the majority of my listening from the computer, but most of my collection is lossless (either FLAC or ALAC). I've also started doing 24/96khz vinyl transfers, which come out VERY nice indeed. Since my computer is the central component of my stereo system there is no discernable difference between playing an audio CD or lossless file (thanks to Jazzbo for helping out with cables). I also have an older Sony CD player, Panasonic blu ray player and a Technics turntable running through the same setup. It's very convenient.
That convenience factor of using digital storage/playback mediums is just too enticing to someone that has grown tired of maintaining and organizing a large-ish CD collection...most of my CDs are stored in boxes.
I've turned into a playlist junkie as well....