What do you want... A cookie?
Burning CDs is just not that fun or sexy. I don't care what the RIAA or some private school kid says. I have a fast computer, and a VERY fast (32x24x40) FireWire CD-RW. I just can't be bothered. I don't want to carry a bunch of CDs with me wherever I go. I'd rather use my RIO 500, which is just primitive by most people's standards. Also, I suppose I don't have a hoarding mentality, but the prospect of a stack of dodgy silver pirated CDs to go along with my existing stack of 200+ CDs that I never get a real chance to listen to is really not compelling to me. I don't think I'm alone in this regard.
I'm right in Steve Jobs' target demographic for the iPod. I have (just barely) more money than time, and I'm more interested in quickly taking my music collection with me than in aggregating every Tragically Hip or Phish concert ever. Convenience is still very much the most important commercial characteristic for music and stuff like that. After all, it is discretionary stuff.