When iTunes & Amazon sell CD quality/Better than CD digital albums or video rentals and netflix can equal Bluray quality then I will share the sentiment that "optical media is dead".
You can already buy and download lossless formats from some outfits.
It's simply that the largest retailers haven't gotten onboard.
There's no reason that you can't right now, only that they don't feel like there's sufficient demand. Music is easy. Video is still plenty possible, but I would tell you already that few consumers have good enough screens, or even would be equipped to notice the difference between iTunes quality and blu-ray quality.
There aren't that many pixel hunters.