From Macworld.com:
Fraunhofer IIS, inventor of the ubiquitous MP3 music format, on Monday made a pitch to audio and computer makers to use its HD-AAC format. HD-AAC is a new digital music encoding format that Fraunhofer says is actually better than audio CDs. What's more, it's already iPod-compatible -- well, sort of.
People have been predicting the demise of the legacy CD and MP3 formats for years. While technically these new formats may have certain benefits (higher quality at smaller sizes) none of them have caught on. The reason why is actually quite simple, it's because CD's and MP3's are already good enough for 99.99% of user applications and they already work with everything.
if you purchase an MP3 you can be certain that it will playback on damn near any device or computer, you just can't say the same thing about these newfangled formats, hence the qualifier the author used above "well, sort of".
The bottom line is I don't think we are going to see the demise of either the CD or MP3 formats for years to come.