One of the great little pleasures, that buying a tactile format such as CD or vinyl gives me, is the ability to appreciate the artwork, read the impossibly minute liner notes and gain an appreciation for the work that has gone into putting the package together.
Given the choice between a jewel-cased edition or a nice gatefold/packaged edition (that is reasonably priced

), I'd go for the better packaged variant all the time.
Julian, I can understand exactly where you are coming from with regards to storage space and the sheer simplicity of having your entire collection at the tip of your fingers, but I love having my music collection on display; it's great for my friends to have a scan through and introduces people to my tastes and the very fact that I enjoy music very much. To quote Neds Atomic Dustbin : "My childhood obsession is my record collection".
I'm seriously considering buying an Airport Express for my system so that I can wirelessly (and digitally) stream my music from my Mac. A mate of mine already has his powerbook hooked up to the hi_fi in this way and the quality of it really astounded me. He was using Apple lossless when importing. However, this, for me, is an alternative but not a preferred means of listening to my music.
I can practically see my life laid out before me in an instant and have great fun digging out old gems that take me back; I even open up the cases to see if I have the receipt stuck down the back.
Would Dark Side of the Moon have been so prolific without it's packaging ?