I prefer to buy CD music but I tend to buy less of it now since my last local record store has closed recently. I have been guilty over the past year or so of buying quite a few albums on itunes... Newer iTunes tracks are 256kbps, and to be honest I don't think they sound too bad. I just like the convenience of buying album right on my phone and streaming it to my speakers right after. I do feel like itunes overcharges for a lot of stuff considering they aren't CD-quality downloads, though. I just bought an album on HDTracks, and since they started offering ALAC, I might start buying more music there.
ht Panasonic 60" ZT60, Monitor Audio: Silver RX6, RX Centre, RX1; Martinlogan Dynamo 700, Marantz SR5006, PS3, Oppo BDP-103D, Panamax M-5100PM
2ch Sony 32" W650A, Sonus faber Toy Monitor, REL T3, Marantz PM8004, Sony BDP-S1000ES, JVC T-X3 tuner, Apple TV, Peachtree Audio DAC•iT, Panamax MR4300
pc Monitor Audio Radius 90HD, Audioengine D1, FiiO A1
+ Sony 65" XBRX850B, Sony BDP-S5100