Sounds like a good idea, however it is not an option for me for three reasons.
My colection consists of 7436 CDs. It has taken me more than 2.5 years to copy them in the form of CD images.
Ripping them as tracks would take me at least twice as long and I will also loose the quality of the original since encoding will take place.
I am a music fidelity fanatic and anything that reduces the quality of the original is a sin for me, since my sound system will immediately show any weakness in the fidelity.
Additionally no media player on the market will be able to adequately handle the number of tracks. Plus when I need to copy CDs to take with me on my notebook is easy because I only have one file to copy.
I have developed a very sophisticated multiroom system and this is the only functionality missing.
Sorry MP3 or even WMA (which is superior in my opinion) are very low quality options for my taste.