I believe the developments of the last 8–10 years have completely passed you by.
Could be on the issues of used media and hardware, I wouldn't debate that.
I can only speak for myself and I've been committed to computer based music serving for 3 decades now. So after I get a source ripped to my hard-drive, I've little interest in taking up space with the media. I may have to take another look at what your saying. When I retired and moved to FL, I was able to sell off all my 4 decades of vinyl and CD to 2 retailers buying the whole collections in bulk at a reasonable number for him and me. I have zero interest in doing a piece at a time sale on ebay.

LOL. Now into another nearly 3 decades in FL, my stack of optical media disc's is once again starting to overwhelm me.
Global music revenue is currently comprised of streaming (approximately 76%) and—in roughly equal parts—physical media (CDs and vinyl), accounting for about 22%. The remainder consists of paid downloads and other categories.
The current 2025 RIAA numbers I got are even bleaker with streaming accounting for 82%, with CD and vinyl about equally split with the rest.

IMO this just reveals the general public's ever decreasing interest in obtaining the SOTA music reproduction which I believe peaked in the 70s and 80s when just about everyone had a decent receiver, TT, and a pair of speakers in the living room. I'm not saying that streaming can't deliver a top notch SQ performance, but it's restrictions in not having all of album X choices of mastering's etc, not to mention lossless multich, makes it simply a side show of available sources for me.
Consequently, CDs and vinyl records are definitely not a niche market.
Depends on how you determine a niche market.
Vinyl is all the rage in hipster land, I see it most every day in the background of current TV shows and movies. OTOH no serious audiophile would ever claim that it has the ability to deliver SOTA sound, it's simply something they enjoy playing with for their own various reasons.
CD's along with DVD and BluRay will remain at the top of choices for those interested in SOTA reproduction, but no mater how you slice the pie, a audiophiles concerns remains a niche and ever shrinking market.
Added to this is the steady stream of new CD and SACD players hitting the market every year. In just the last two years alone, over 20—yes, 20!—new, high-quality desktop CD players have been released, with even more already announced.
Kind of like all the new $10,000+ turntables that have come to market for the very deep pocket High-End market to play with and show off. We're on ASR here and I don't believe you would claim these new expensive CD players can deliver any better sound quality than a $50 used blu-ray players digital out into the DAC of choice?
People are buying what they buy for all sort of different personal reasons, the things important to each individual guiding the way.
Personally for nearly 6 decades, it's always been all about the music and hearing into a recording from the best possible source available, outside concerns are mostly irrelevant. The fact that I've never had those deep pockets means I've had to chose the least expensive way to achieve that goal.
YMMV
