Ady, to be honest I think it's not bad but very astounding that somebody thinks your liner notes are worth reproducing
Anyway, back to the thread: If there was/is any specific reason for CD sales going down since the late 90s it's the general file sharing/mp3 swapping to blame and certainly not home-compiled CDs.
But personally I don't think that's the only reason for Goldmine/Goldsoul and Grapevine going out of business. I think the first simply didn't come up with any interesting CDS in their later days, i.e. rather unloving compiled CDs with boring sleeve notes. The latter, Grapevine, was too elitist to get sufficent sales, although I have all of their releases and think they were brilliant (apart from the Funk ones ).
Giving away complimentary CDs at venues sure doesn't do any harm to official CDs sales, anybody saying so simply tries to find a cheap scapegoat. I always saw and will see CD freebies and home-made CDs being sold in small numbers as the natural successor to audio tapes. Of course advertising them on the net and selling in bigger numbers is just as illegal and immoral as counterfeiting official CDs.