Yeah, I've gone completely digital. I bought one CD last year because I wanted a single song off it and it was from the 80s and they don't have the song on any digital music service I can find. So I bough a used copy of the entire CD for the same price as 1 digitally downloaded song plus twice that for shipping. ($.99 for the CD, $2.00 for shipping!).
I use iCloud and like it, though I haven't gone whole-hog on it yet with iTunes Match. It sounds really cool, but just haven't tried it yet. It allows you to have your music in the cloud without uploading it. That is, if you already have it on your computer, then they'll store a (probably higher quality) copy in your iCloud storage for you from their library without you uploading it. When you hook up a new device, it just downloads it from there, no syncing with a computer necessary.
I even have been signing legal documents digitally lately. All the real estate agents here seem to be comfortable with it, as do the lawyers, accountants, etc.
Over the past 3 years we've moved twice, so I've pared down a bunch of stuff. (Not just media - we had a storage space full of stuff we never used, so I free-cycled most of it.) There still seems to be a lot of paper in my life. It's getting better, but slowly. I bet in another 5 years, we'll have a lot less of it.