MP3's are much easier to deal with in bulk, but from what I hear are a stepdown quality wise from CD's. Nevertheless, I really prefer mp3 files.
I do a bit of both, but CDs are always gonna be there if your computer crashes and you've no back up.
I buy it from iTunes. I don't do it the illegal way, because making music is job for a lot people, I want them to have their job!
I buy everything from iTunes, haven't bought a CD in years... Here in Sweden we have a program called Spotify which is a legal, free way to listen to any music. So at home I use that, its only when im out and about, especially when im running that I use any kind of music device.
I'm not so technologically advanced, and thought nothing would top CD's. but, I been getting into downloading MP3's and how much more you can save on an sd card. It's pretty much taken over how I get and listen to my music.
CDs are out of fashion now and it's all about MP3. Think about it! It's more convenient to carry around with you a small MP3 player rather than a big and chunky CD player. They are also more convenient in terms of accessing them and downloading them. :)
Mostly Mp3s. I will buy a CD if I really like the artist in order to support them.
I buy CD's only for present or to listen them in my car.
I prefer to download, however when it's someones birthday I do tend to buy them a CD if they want it.