I still buy CDs. Do I listen to them directly? No, I rip them and go with the FLACs, but it's still nice to have something physical, especially if buying directly from the artist (e.g. at a concert).
Yes, but that's hardly something I rely on. I prefer just copying my whole music library across several hard drives, some of them staying outside of my home. If I have to rip everything again, it would be quite a lot of work.