You may be right. But that CD sales are down (at least in the US) is not a surprise at all.
But we do look at this differently. I think it is all about convenience. Digital was all about convenience. The "perfect sound forever" nonsense was a selling point but once folks got used to the ability of skipping songs with their remote or sticking 6 CDs in their car CD player (i.e. convenience), CD growth took off.
Then this on-line book selling company (Amazon) started selling CDs and I didn't even need to leave my home to get my music (more convenience)
Streaming is yet another convenience.
The masses determine market direction, and we are NOT the masses. I believe that over time, most all physical media will disappear. Will vinyl hang around? Probably for some time. Do I think there may be some companies who still sell physical media? Yes, at least for a while.
I would much prefer that unless streaming services could provide full bandwidth audio and video, that the BluRay never disappear. But I am not the masses because the masses don't care. And most companies sell to the masses.
For those of us who only want "What's Best" in music or movies (not the hardware to play it on), IMHO, the ability to purchase physical media will continue to decline.
I did a quick bit of "research". Vinyl sales worldwide were about 3 million units. CD sales of about 550 million units but most importantly, streaming has now surpassed those numbers. It is only a matter of time!!
But that's just me.