Most of my clients want to purchase their images on CD. As a consumer myself, I completely understand that desire - especially in today's digital age! Plus, having electronic copies of pictures completely simplifies the process of sharing memories with friends and family - at home or abroad.
In most markets, demand for images on CD is growing rapidly, so the cost of digital images must provide the profit margin required to justify investments in cameras, lenses, lighting, computer hardware and software, the hours of digital post-processing, and the regular costs of doing business. These investments are necessary in order to both survive and excel in the art of photography...not to mention to wow and please clients! No serious photographer wants (or can afford to) give away their images for nothing.
The majority of the people I work with want to own at least some of their image negatives for archival and reprint purposes. So, I offer the images for purchase as DVD slideshows and lo or hi-res negatives on CD along with a beautiful proofbook with previews of all images on the CD (plus safe archiving tips and printing recommendations). Also, when a client purchases electronic image files, I deliver it all in some really fun and completely customized packaging!