Well, my first career was as an Audio Engineer, and my turntable (direct-drive, linear-tracking) has a $400 [b]cartridge[/b] in it (circa 1986), and sounds, given it's limitations, fantastic.
But here again, you are making characterizations of the CD format based (at least sometimes) on poor mastering. Well, duh, if the master is crappy, then of course the duplicates of that master will be.
The true test is to create an LP and a CD from the SAME master. Of course, the natural dynamic compression you get from vinyl will still change the perceived sound, and there are certainly those who have a preference for that sound, but again, that isn't the same thing as fidelity.
I take hyper-good care of my vinyl, as a lot of it is irreplacable and the music will never be available on CD. Much of it has only been played a couple of times, to transfer the music to another medium. Still, there are clicks, pops, hiss, and other noise, limited dynamics, and don't forget that vinyl degrades every time it is played.
Could CDs be better? Yes. It would have been great if they had STARTED with the quality of SACD or DVD-Audio. But very, very few people will actually care enough at this point to purchase either format. There just isn't a big enough market for it, given the quality of the sound system AND listening environment required to tell the difference.
For example, of the over a hundred car stereos I've ever heard, less than five of them even approached decent, balanced sound. Most people's home stereo speakers are placed in locations that are convenient, regardless of sound quality.
But all that is okay. CDs still sound pretty darn good, assuming the person making the master knows what he's doing. Any format can sound only as good as the master it is attempting to reproduce.
-Troy