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I have no problem storing CDs. I've a couple of storage cabinets that take c1000 each, and - if you take sensible care - CDs and their cases are a lot less prone to damage than any of the preceding formats. I've also got CDs from the early days (ie mid 1980s), and although a very small % have discoloured through time, I've yet to find a single one that's become unplayable merely through old age,
Spotify (etc) is unarguably more convenient, and if/when we're all on high bandwidth and stable internet connections across multiple devices, each of which can interface effortlessly to a decent amp/speakers set-up, then perhaps it will replace CDs in the same way that CDs replaced cassettes that replaced vinyl (ie "replaced" for the majority of consumption, not to the extinction of previous formats).
But that's possibly a generational thing too, because Spotify is a rental/consumption/immediate gratification business model, which is different to the CD phyiscal/collection model.
I'm not suggesting that either is right/wrong or better/worse, but they are very different business models.
My issue with jewel cases comes from moving a large (1500 odd) collection a lot, both between houses, which I've done several times, and to-and-fro from university back in the day. Carry them in large enough piles and the things slide around and fly across the damn room. I built a dark, hate filled corner in my mind, and for me, there dwelleth the jewel case... YMMV!
There is also a space issue, I live in a mid-sized three bedroom semi, and used to own 2000 CDs. With the best will in the world, with guitar stuff, movies, books and CDs, one of them had to go, well that or the wife I still have a chunk of CDs, maybe 150 or so.
I think you've identified there is as a way and form of listening that I do embrace as well, which is why I've started buying some albums on Vinyl. I don't think for a sub-section of listening, what you describe, through a proper amp and speakers, that Spotify actually has any advantages over the other formats. Apart from anything else, having anything with a screen blaring out bright colours is not how I like to listen to music, in the dark with a beer or wine! That's for me of course.
I also missed the feeling of owning an album, listening to something, loving it and buying it, like a kind of musical democracy and an identity all at the same time.
Where I do love that though is that most of my listening is not done in a quiet room with a beverage but in my car, through headphones at work or at my desk through my pc speakers. Therefore, Spotify fills a great gap for me there. Also whenever someone recommends a band, something gets discussed on here or someone mentions a song I've never heard of for one of the jams, I've got instant access. My AV amplifier also just appears as a device in spotify on my phone when its turned on via spotify connect, which is pretty cool.
As you say, for a subset of people, physical collections won't ever go away, including me! Except for a small percentage of the current generation, and I mean people 10 years younger than me, physical media has literally never been a thing, which I guess could be considered sad.
I had one guy who worked with me for a while, lovely chap, who loved his music. He was about 18-19 at the time, and would still come in to the office and say "I picked up the new Johnny Marr album last night" or whatever (this was a few years ago when he did his first solo album).
Some of the CDs I kept I can remember the exact time and place I purchased them, so they also gain a value in their connection to a time and place as well as the 1s and 0s stored on them.
I dont think our beliefs (jewel cases notwithstanding ) are that far apart!
i prefer to buy music on formats that physically exist. Download is undoubtedly convenient but... it’s not for me.
I still buy CDs where I can’t buy stuff on vinyl or if it’s cheap - charity shops are good sport but often it’s stuff that not many would want!