i personally believe that cd's can and do sound great- depending on recording and mastering. Natalie Merchant's Ophelia happens to be a demo disc I use frequently.
Dynamic range is an important consideration: i recorded a Steinway grand at my aunt's house. I thought the CD came out pretty good after mixing and mastering on my system.
Back at my aunts house, when she turned it up to hear the quiet bits, the woofers rattled in her upstairs spkrs, and her walls rattled downstairs using a Bose sub/sat system.
Do I think engineers should make records/cds for me, with 4x 12in woofers, or for my aunt? For me, obviously, but the engineers dont seem to agree.