Apple had a decision to make: should they have two applications that do the nearly the same thing?
The CD app, while pretty and small, could only play CDs and MP3s. It could not do a CD title search, could not stream audio, could not burn CDs, and didn't have the Visualizer.
While I don't care for the iTunes interface as much, it's a much more robust application and does all the CD app did and more.
what would you have done in their place?