Booklet printing will be done on the same color laser printer we use for Hypnos Secret Sounds booklets, though we will probably use heavier paper, more similar to what we have used in the past for Hypnos releases. When HSS first started years ago we used an inkjet but that printer didn't work well outputting large print runs, and inkjet inks smears when it gets wet. With the color laser, the ink is at least as waterfast as commercially printed materials, and looks good too.
Yes, a paper envelope is less durable than a plastic case, but we'll figure out a way of providing envelopes for people in case they wear out. We'll either sell them for our cost (3 for a dollar or something) or we'll throw in a replacement envelope on request with a future order. There's no reason the printed materials and CD shouldn't last as long as they would in a plastic case. And I disagree about digipaks being durable, at least in my experience. With digipaks, the printed material is right there on the surface, subject to scuffing, denting, dog-eared edges, water damage, and fingerprint oils, every time you handle the CD package.
At any rate, continuing with the way things were would have just resulted in Hypnos releasing fewer and fewer CDs, and shifting more of our releases over to the Hypnos Secret Sounds end of things. But because many of our customers don't like CDRs, I didn't really like that option.