Hi,
Interesting post - thank you jkn - and some good replies here on the forum as well. I basically agree with mgriffin and others on the release treshold raising effect of a physical copy but I have doubts on the size of the effect. Since, as jkn also said, making a CDR release isn't really that difficult or expensive these days (in terms of producing the physical disc, not the whole process of making the release

). This is especially true if the releasing label does not put too much effort in the artwork of the album.
I personally find it hard to value a CDR with an unoriginal, basic one page booklet more than a properly documented web release with decent artwork. That's of course a black-and-white exaggeration but maybe makes my point clearer. And, well, I've also come to question why I hold a real CD in so much higher acclaim than a CDR*. Maybe it's just because I know that it costs more to make so I make the unconscious evaluation that it must be better in musical quality as well. Heavy vinyls raise this effect to the upper limit for me... Which is silly.
Releasing some interesting bits of music in the future has been on my personal agenda as well, which is why the question of format is also of practical interest to me. I know I personally would not want to take the route of releasing a CD/vinyl just to guarantee more serious attention. But releasing an album on an unknown netlabel probably goes easily unnoticed if I don't come up with any royal ideas on making a name for the artist/musician in question (myself or some other).
So far I've enjoyed the idea that a limited special release, for example a CDR in a handmade neat-looking recycled-material sheet (maybe in collaboration with some artist capable of realising this really well), would go in combination with a high-quality download option. The limited run - maybe just 50 copies - serves as a well-crafted physical item for the few initial fans and maybe creates more interest in the music in general. This would clear the way, so to speak, for people to take the mp3/flac files more seriously.
Best wishes,
Kaarinen
* I understand there are some technical issues with CDRs not working in some audio systems or that they might physically deteriorate more quickly. I haven't run into these problems personally but I understand that some of you might have.