I has been discontinued for at least two years now, but there may still be some new ones floating around. I got mine about a year or so after they were discontinued. And yes, it does play CD's.
You are probably going to be limited to Sony (and maybe Sharp) for a CD/MD minisystem that does MDLP and is in current production (unless you want to look for a Japanese model and have it shipped over.
My advice if you can afford it, is to get a combo deck (like the Sony MXD-D5C that I just picked up for $200), and then either a receiver or integrated amp and a good pair of speakers. You could get the MXD-D5C, a receiver (Sony, Onkyo, Denon for $150-250) and a pair of bookshelf speakers, like some Polks for under $500 and it would be a lot more versatile than most minisystems and most likely sound better too.
-Keith