I was kinda one of those people Kopper mentions... though it was way before I discovered the Hideout (which incidentally does very cool contemporary comps! Great work Kopper! [even though I haven't actually got any of them... see below!])
I used to make CD-Rs for use on our radio shows (saved carrying in boxes of CDs!) and then give them away to friends... And as Kopper says, now you can just do downloadables...
However, not everyone has access to, or can afford to use, the internet... so there is still a place for the trusty CD.... For example, we live in rural Australia, there is only one internet provider (bloody TELSTRA! Listen to the brilliant song by Sour Sob Bob about its woefulness!) and just a couple of downloads and clips on youtube uses up the whole month's usage! It sucks! But I digress...
My point is that there is a market for well-thought-out compilations... maybe tying up with a good independent label (such as 'Off the Hip' or 'Laughing Outlaw' or.....) and though you won't make money, you should hopefully cover your costs, and we, the public, will get some great music... compilations ROCK!
Failing that, yes, make CD-Rs and give 'em away... and please send me a copy! heh heh!
Cheers