This is an internal debate I'm driven crazy by. Since I was about 14, I only bought records, CDs when that was the only option. When I hit about 24 I stopped buying so many records and moved to CDs, mainly due to changing tastes (most of the prog/jazz/noise/krautrock I was listening was CD only or else originals were crazy rare. Now I'm back to buying vinyl almost exclusively and there's a ton of stuff I could never even have dreamed of finding in LP format a few years ago sitting there new for a reasonable price, so I'm re-buying favorites I already had on CD.
Yet more than half the time, I listen to music on my phone in 320 mp3, on the go since I don't have even a fraction of the time I'd like to spend in front of my record player. Now I have to make time to actually listen.
Does vinyl sound better? It is more dependent on the stereo/turntable/speakers/headphones than the format. I bought my first "real" stereo about 5 years ago - I didn't go overboard but I bought an excellent system and wonderful speakers. CD, tape or vinyl, I felt like before I had ears filled with shit. CDs shouldn't sound any worse if you're listening to them properly.
Here's a great article on vinyl vs. CD from the hifi shop down the street from me. Great store, even if the level of audiophile insanity is really just ou to lunch:http://www.planetofsoundonline.com/articles/yesvinylisback.php