From what I understand, CDs were prohibitively expensive when they came out in the 80's. You could get the LP for under $10, so I assume the CD album costed much more. As someone mentioned before, owning an original CD was considered a luxury. I remember when I inheirited my dad's music collection, there were a lot more cassettes and LPs than CDs, though he had come to the states no sooner than 1979.
I, too, am one of those strange people who still prefers to own the CD rather than just a digital file. Though the price of LP records has skyrocketed, used CDs are cheaper than ever. I can grab 'em for <$5 a piece at my used CD shop or on Amazon. I imagine labels will stop pressing them sometime in the near future, but even so there will be loads of discs available on the used market, just like vinyl.