I think Joshk nailed it. I have a Naim CDSii CD and a Verdier turntable, a respectable set up, and listen to CD's when I am not listening to XM Radio as a lazy lo-fi guilty pleasure. I listen to vinyl when I am showing off my system or when I want to tune into an older record, or when I am focused on the sound. In most cases vinyl rules. But if everything you like has been recorded since, say 1986, or 1990 at the latest, CD is your best bet, on average. If everything you like has been recorded before 1986, and you have the patience to clean and take care of your records, vinyl is incredibly rewarding. I believe that there was a time around 1986 that almost everything became digitally mastered, and that this process was complete around 1990. At that point, the difference between good vinyl and good digital became subtle. Before that point, the difference is not subtle.
Famous Blue Raincoat by Jennifer Warnes is a major demo favorite. At my house it sounds about the same on CD and LP. The older Jennifer Warnes like Shot From the Heart, is much better on vinyl. Little Feat, Grateful Dead, Dire Straits, Eric Clapton, Bonnie Raitt, Ry Cooder, Tony Bennett, etc -- this scenario applies in spades. Older recordings are better on vinyl. Newer recordings though are subtly different at best. Radiohead is subtle. Buena Vista Social Club, Eric Clapton Unplugged, Keb Mo. Anything well recorded on digital since 1990. All subtle vs vinyl.
Caveats: This is a good rule of thumb but depends on your system to some extent. All bets are off on audiophile labels and the like.
I disagree on the comment about thriftshops. Some of the best sounding vinyl stuff I have came from thrift shops, but you have to clean it with a serious system like a VPI or nitty gritty and you have to choose carefully. If you do, you won't believe what is out there for $1 apiece.
That said, I listen more to CD, iPod, and XM these days. But all digital is compressed audio by comparison and vinyl is at least mildly superior in sound in almost every way.