CDs and DVDs - Why???

As far as the CD and DVD technology, I've felt like I've been in a twilight zone episode for the past 5 years!

Let's face it, CDs were a breakthrough technology in the 80s, brought great features and portability over the existing tape players.  Later DVDs brought more storage and functionality, but I can't understand why this media is still being used commercially today.

Netflix tried to buck the trend and tried to push streaming versus physical DVD rental and the stock plunged, the masses rebuffed. (in this case the business model and content availability were to blame)

I have two little boys that rent DVDs from the library to see the latest Sesame Street video, it is rarely playable since a few tiny scratches render the medium unplayable.  Bring back the 3 1/2 floppy! :)

Solid State sticks are great, but I guess the cost per use ratio isn't as viable as the cheaply produced DVDs...

Any alternatives on the horizon so I can go on in peace?