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The mp3 is not always cheaper.
I was looking at a double CD album of The Best of Bing Crosby, a BMG import. The mp3 price was $19.98, the CD was $11.98 plus shipping, and there were brand new copies in the "used" section for less than $8 plus $2.98 shipping.
I think I would rather take the CD than the mp3, even at the same price, if for no other reason than you could rip the CD to mp3 and give the CD as a gift to someone else.