I gave up on jewel cases and liner notes years ago when I purchase on of those huge 300 or 400 CD (don't remember the capacity) jukebox CD players. It was a PITA to program in the artists and titles. Once I did that I didn't both with the liner inserts. I had a couple of those folders to hold them, but never really bothered looking at them, and there were too many. So they just went into a box in storage.
When I got an iPod I took all of the CD's out of the jukebox and started ripping them - still have a ways to go. The huge CD player is also sitting in storage.
I'm really looking forward to getting an Airport Express/AirTunes module so I can connect to my stereo aux channel, and use my PowerBook as a stereo remote control. I also don't have to worry about TiVo not supporting m4p's (since that is how I currently stream from the computer to the stereo).
I've bought a mix of iTunes songs and CD's (generally if I wasn't able to find them on iTunes). I'm not so much hung up on pristine sound quality as I used to be.
I've also be listening to Sirius a lot more as well. Nice variety of stations with no commercials - a nice way to listen to new music that I don't own. Has also helped me find new artists to buy songs (not necessarily albums) from.