To be completely honest, what I am seeing here is a case of technophobia.
A similar, albeit not exactly idenitical situation I identify this trait with is the case of MAC/PC interface (or Ipod vs most non-apple DAPs). While it is arguably or alledgedely easier to go with greatly simplified interface for those who are not as technologically savvy or willing to learn, having more advanced features and ability to customize things to the users liking does not necessarily accompany a decrease in convinience.
In choosing a music playback device between CDPs and computers, I think the difference is a lot more clear-cut and less arguable. Not only shuffling through CDs is a hassle and requires a considerable to huge amount of physical space, it is harder to navigate within the same track as well (think VHS vs DVDs on computers). Using Foobar or Winamp certainly is not any more inconvinient than using a CDP, while the benefits of using them is obvious.
As for ripping CDs, my intuition tells me it would be even more necesary as your CD collection grows, as organizing and indexing into the CD collection will become an increasingly daunting task.
There really isnt a rocket science behind a quite computer, as other posters have clearly expounded above. If anything, EPIA should be a very cost effective solution at not-so-inhibitive price.
This is no different from people insisting to write checks at the cash register when the drawbacks greatly outweigh the benefits. While I respect their opinion and dont ridicule or mock them or anything, it simply doesnt make much sense to me.
On a related note, I have always wondered : with all this much investment (probably a lot less compared to some of the other members, but still) I have sank into this hobby, what would be my initial reaction to hear something completely ground breaking, low-cost and much higher fidelity? Presumably it would take some time getting used to, but sooner or later I would have to bitterly cope and embrace the advances in the technological domain.