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I subscribe to ckbk now (which is awesome) and I'm considering getting rid of the books I physically own that are indexed on ckbk. Is this a crazy idea? It would be nice to pare down some books in my house (I have way too many bookshelves in my house and not enough space). But I don't want to ever lose access to them!

Obviously you need to look at your own unique circumstances when deciding if CKBK is for you long term but for me it doesn't seem to be such a good deal. The main problem for me being the subscription model. If monthly prices stay the same(they won't!!) £4.99/mth in the UK a 10 yesr subscription would cost £600. That would buy alot of cookbooks. If you wanted digital versions huge numbers go on sale for 99p.... just yesterday Nigellas 'cook eat repeat' was 99p The other obvious benefit of that is you'll own them for life. If CKBK shuts down for whatever reason you'll lose everything regardless of how much you've paid in subscription fees.
My physical cookbooks are hugely curated and I only purchase ones I really want.... everything else is via Kindle and then only when on sale.

I use both physical books and ebooks (not from ckbk at the moment). Printed books are useful for research; ebooks for e-books for display in the kitchen. If I can I print a recipe from an ebook (screen grabs if the publisher does not permit printing) as it is less embarassing to spoil a sheet of printer paper than a much loved book.

All forms have their uses even if/when I possess duplicates (some triplicates).

This is such a great question. I have been donating many of my (lessor used) cookbooks when I can find inexpensive kindle copies, but I'm not sure how I feel about ckbk. I've only recently subscribed, but I was thinking of it as an expansion rather than a substitution. But as space is always at a premium, it is an interesting idea.