actually, gramophone/vinyl/record usually sound better than cd's, eg, at a HK$10,000, cd player system compared to gramophone/vinyl/record ( at this price there is very minimal hiss), the record player wins, i believe it's to do with analogue wave compared to digetal sampling, however, vinyl/record are inconvenient as they are delicate as well you can't change tracks.
however, new technology such as SACD, dvd audio, even bluray audio is meant to be even better than records/vinyl
i don't think it's really psycholocal, ( eg similar to placebo effect), i have test cables to people who have no knowledge of hifi, they have said there is a difference.
In uk, a store (richer sounds) even loans a set of varible price cables to test yourself with no quibble returns.
However, cables should not be purchased in balance with your system, eg, 10-15% of the value of your system, as it's pointless to go excessively
the main factor, do you have a passion for faithful music reproduction or does any sound regardless of quality suffices you.
I assume that if you satified with an all in one/mini system, then that fine, however, you will never get the scale or the intergal detail of a live concert/performance ( note, i don't mean volume) , just as a all in one home in cinema in box will never reproduce a true cinema experience ( maybe you should arrange a listening session within a decent hifi dealer or a friend with separates system with your favorite cd's/dvds)
I was once a mini system fan way many years back during the start of my uni, until i was converted by a friends who asked me to come with them for a hifi listening session (as they was purchasing a system), the mini system was passed on to my relatives shortly after purchased a decent marantz system since)