CDs win for conveinence, seeing as I can play them in the car or transfer them to my mp3 player to take anywhere.
LPs win for sound quality. If I'm in my bedroom with my record player I'd MUCH rather play Led Zeppelin/Alice Cooper/Jethro Tull/Neil Young from the turntable than my computer speakers. CDs sound sterile, LPs sound warm and inviting. Not to mention I'm really into album-oriented rock and love to listen straight through both sides, which I tend to do more often with records. With cds or files it's too easy to just go "skip".
They each have their perks, but LP wins for sound, and sound is most important.
edit: Plus I love the huge artwork on LP covers! Nothing like putting on a record and then sitting back to admire the cover and inner artwork.