It wasn't just the cover art (and the large canvas of LPs made that art even more impressive), it was also the interior inserts and creative designs that were appealing. Led Zeppelin's Physical Graffiti with its sliding windows is an obvious example of some of the unique things you could do with album covers.
As for 8-track, no, I don't know anyone who replaced their albums. Although the manufacturers tried (rip 'quadraphonic') I don't recall 8-tracks being much more than a format used mostly for low-quality mobile listening in automobiles, and mostly replaced by cassette tape by the time I was driving. Back then I'd just record my albums onto blank cassette tape. Later, I recorded them onto CD. These days they're digitized in FLAC, but every now and then I'll pull one of my old albums out and spin up my old turntable. They made things to last in those days, and my ears are still analog. I suppose when Elon Musk has sold us all our digital brain implants I'll have to retire it and pay for streaming rights to my old music.