There are still plenty of audiophiles that are happy to fork out $10,000 or even significantly more for a good turntable, arm and cartridge.
I upgraded mine a few years back, and for me, it is noticeably better than even flac files. I've never actually owned a CD player outside a PC, so can't really compare.
The biggest issue is lack of product. My musical interests have always been slanted toward the latest rather than when I used to listen to in my youth, and few new releases are available on LP. The odd one that is can be a real "ear-opener" as recording technology has advanced so much in the last 30 years that I've been listening, when you get a good LP, it's astoundingly good.
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