I had not thought it through as much as you drone on.....the government aspect. I know for a long while the post office has hurt due to emails, people rarely send written letters anymore but parcel post seems healthy and I believe its still cheaper than any other international options, DHL, UPS & Fedex, though I must say I have not check, need to do that.
Its a truly magical moment when I get a sale of my music, digital or physical and Im always touched when a purchase comes from Europe because I know the extra money involved in acquiring this music in physical format.
Cd's are far from dead but the current international shipping cost from the US are very detrimental to the compact discs already dwindling popularity.