Good points. Except if you already buy CDs, why not continue? It’s not that hard to copy songs from a CD to a memory card, and your media format (your library) stays consistent. I am not sure you will have a lot of people shifting formats for immediacy or to save on 10 minutes of labor. Then again, you do get the memory card, but how many people will wipe that out to use it for pictures of the kids?
So, it seems like we are talking about the rare, non-CD buyers that are interested in purchasing music in a physical form? Or, memory card buyers that opt to get the one with music over the one without music, but how many memory cards does the average person need a year?