I do see early warning signs of the demise of the CD. Occassionally the smaller indie recordings are only available as download. It's still fairly rare though. I've never bought a download. I own every recording on CD.
As long as people are still buying CDs, they will still be made and sold IMO. Cassette tapes were absolete after the CD but it probably took another 20 years for them to die off completely. Only the complete lack of demand killed it off.
If you were a record company exec do you think you would stop making CDs and risk a giant dip in sales? Why? What would be the up side? It's not like they are losing money on them. When the demand becomes so low that they acually do lose money on them, then they will stop. That's a very long way off.