I sure like the idea, but still have my thoughts.
I see our market divided in two: vinyl and mp3
Cd fits at the mp3 side of the market.
Then why would you create extra costs by burning cds and send them
by post if you have the possibilities of downloading the music?

I think that cds are a step in the process that has already been taken or skipped in the market from vinyl and mp3 because of the arguments mentioned above.

But as far as I know there isn't yet anything as your idea, and there is a market for it, but it's get smaller as there are more and more people get fast acces to the internet.