Of Montreal - Skeletal Lamping.

There has been lots of talk of the rise of digital music and how it is going to wipe out traditional, physical music sales. The sort of 'counter-balance' to this has been the importance http://www.blogger.com/img/blank.gifof the physical media, especially it's design and artwork. Is a really great website that totally reiterates this sentiment. Documenting the best in vinyl/cd packaging.
I especially like this Karftwerk packaging:

What's so great to me is that something like this is not all that expensive to create. Binning the traditional card sleeve for the transparent plastic is hardly extravagant and I think the design is particularly sympathetic to the vinyl format because most people that buy records favour it for so many ways, including it's aesthetic , to cds.

Of Montreal always create interesting artwork to accompany their releases. Their newest record especially.

'Skeletal Lamping' has been released in various formats. Taking advantage of the rise of the digital album, they have offered it in the form of wall decals, shirts, lanterns among others, with the digital download included.
The cd is also packaged well. The album has a cut-out front, and the insides fold out and collapse to reveal hidden artwork:

I think more artists should focus on the art if they want to ensure people pay for the music they're listening to. If a record isn't a nice object to have, people won't pay out for it.