CD players going bad fast is one thing, cd's themselves go bad due to poor handing or manufacturing. There can be no further improvement in CD optical delivery technology as the medium is already obsolete and not further researched into. The delivery method is the same and has been the same since 1990, there can be no profit expected from holding onto a dead delivery medium, only the electronics post the delivery.
SD cards are amazing in that regard, I've had an sd card since late 90's which has been in use daily on tons of different pc's and it's never had an issue while I've run through dozens of discs and usb drives to completely not using any optical discs today, I dont have ANYthing on an optical disc anymore because the delivery medium itself is so fragile it's like throwing your money at a burning fire.
I believe you haven't the 'opportunity' to see a SD card go bad

Believe me, it happens; and has happened to me. Consider yourself lucky.
Also do consider the flash memory chips used in SD cards, etc. too have a limited lifetime. I believe most flash chips can only sustain writes to the order of 'tens of thousands'.
While its true that CD's and even DVDs can be easily scratched, Blu-Rays have a harder surface than CD/DVD, and are more scratch resistant.
Ultimately, all physical formats with resolution higher than Redbook Audio CD have failed in comparision. There's a long list of outright failures & might-have-beens: SACD, DVD-Audio, Blu-Ray Audio
On the other hand, there's been an exposion in popularity for lower resolution lossy music: AAC (iTunes) & MP3.
The writing on the wall is clear:
- Lossy formats (AAC & MP3) for mass market consumption; usually downloaded online.
- Audio CDs for those who want to archive, and want music in lossless 16/44.1 resolution.
- Online downloads for those who want higher resolution at 24/96 or higher. Of course, there's a good ongoing argument whether this high resolution is really 'better' by itself, or whether its superior mastering thats actually being percieved as 'better'.
I don't see the market aligning towards SD-Cards, DVD-Audio, or Blu-Ray Audio for distribution. The consumers have spoken for online downloads, and the Audio CD only survives due to inertia & the existing installed user base. There is no space for any more physical distribution formats.