Well, firstly with the CD, you can get some pretty good 2nd hand ones for £100, depends whether you want to fix it as you know it or not.
Secondly if you do rip the CD's to a Hard Drive and you do it the right way then you will not loose on quality, there is a thread on here how to go about that, just don't do it using iTunes or similar.
Personally i you are going down this route then think about a NAS (Network Access Server), basically a hard drive that you put on you home network and connect to it, you can put your whole music library there and just let it grow. Wherever you put it, back it up regularly to another hard drive.
If you want to experience new music and have easy access then look at threads about streaming from the internet, there are many options and some are quite cheap. e..g. Raspberry PI and DAC (£100-150) or with external DAC, if you go for the RPI/DAC only route you may want to look at the I2S DACs
https://volumio.org/product-category/dac/i2s-dac/, simply put I2S is the protocol used by the computer to process music, so having a DAC that can handle this means less conversion and introduction of errors. I have RPI/S/PDIF card type of solution feeding a Beresford Caiman SEG DAC(which is excellent) lots on AoS about them, which goes to a passive pre-amp(switch box) and direct to power amp(s), I control volume from the Volumio application that plays the music on the Raspberry Pi(small card computer). Also use Volumio to access TIDAL that I subscribe to for streaming music at hi-res or Aidirvana on my computer.
Volumio have just released a complete solution which may be worth looking at, there are lots of others out there but can be pricey.
Pre-Amp is useful it you want to switch between inputs, but not if you feel it colours the sound, but you might want to do this anyway. I seem to recall that you pre-amp is pretty good anyway.
I hope that helps a bit.