And as I was writing in my blog, I'm converting my CDs into a digital library at the moment. I'm using FLAC to get a great lossless copy digitally and that will be locked in the library. I can then use apps like Media Monkey to convert to the appropriate format for whichever device I'll be using without being locked in.
People are lazy and Apple/Microsoft relies on that. You do not have to use iTunes at all to use or sync an iPod. Apple like to tell you that you have too though. The only time you need iTunes is if you want to buy protected content from Apple's store. More fool you if you get locked in to that.
I have used TVersity to act as a server and as I have codecs installed to replay FLAC files I don't need to convert at all for listening. I can even use the Wii to listen to them! Not that I want to

Yet the XBOX still can't 'see' any media over wi-fi whether I use Vista and MCE or TVersity!!! And they are from the same manufacturer!!!
I still try and buy the CD so I can decide how and when and where I listen to the tracks.