Here are some promising signs that Hi-Fi may survive:
Some producers, like Daniel Lanois, are taking matters into their own hands, releasing digital wave files and mp3s for the same price.
Some online music stores, like the Toronto based zunior.com, are offering downloads of lossless FLAC audio files for an extra $2. The format is compressed enough to download effeciently, but boasts CD quality sound.
And perhaps the most interesting related trend is that vinyl seems to be making a comeback. Vinyl requires a separate mastering process which should mean that the compression techniques used for mp3-ready audio would not be used. In Canada, lots of indie pop and roots rock records came out on vinyl in 2007 on the Saved by Vinyl label.