I still own lots of physical CDs. Sometimes I listen to the CDs themselves, sometimes I rip them temporarily to my mp3 player, for portability and convenience, and listen to them there and then delete them to make room for more. For the most part I listen to whole albums (or in the case of classical muic, whole symphonies, concertos, etc.) rather than individual songs, but I have been known to rip individual tracks and make myself a shufflable playlist.
Someday, due to space issues, I may have to rip a lot of my music to a hard drive (or DVD-Rs or something like that) and put the CDs themselves in storage somewhere. But I can’t see mayself selling or giving away the CDs. Partly for legal and ethical reasons—if I no longer own the CDs, my legal and ethical right to possess the songs is doubtful at best. Partly because I’d be afraid of losing all my music in a hard drive failure or something like that. Partly because I like the “documentation” that comes with the CD (the lyrics, credits, photos, liner notes, etc.). And partly because, if it’s an album or artist I care about, the CD is a physical Artifact that I want to have on my shelves to show my support.