Solutions solutions...the market drives everything.
So you want to sell photos, well if everyone wants a CD and prints are a secondary determiner, then you will be forced to provide the CD, else go out of business.
There is a niche out there that values the old days of print proofs, prints, etc...; but your plastic banana good-time rock 'n roll crowd that lives in this entitlement generation wants the CD so they can send to every one right now on the internet so people can come back and tell them how good they look.
It no longer really is about posterity with the past two generations as much as it is "here are my latest photos, so look at me, right now RIGHT NOW DAMNIT!!!"
I just had a conversation with a rather new mother (she has been a wife for quite a while now) and she is pretty good with a camera (Chubbyfoot type stuff
http://www.chubbyfoot.com/), but since she started taking photos in the first place for all her friends and being the type that cannot tell someone "no, I have a family commitment, etc...," she is almost ready to quit all photography because her family is suffering from not only her time away, but she is spending her own dollars on filling orders for people where all her work is pro bono. She is a homemaker, so only one income in the house. That all being said, she needs to start a business, or stop taking photos for every Jan, Jill and Jane that comes along and tells her her stuff looks great, "and will you take our picture this coming Saturday and get the pictures to me Sunday night so I can put them on my facebook account Monday from the free high res CD you give everyone?"
I think this young lady sees that priorities have always got to be in order and you must know your limitations.
Usually when you tell someone you are in business, they expect to pay; but when you walk around with the nice camera and lens, but don't have a business, people will suck you dry everytime, friends or not.
I told her to start a business, the right way with insurance, taxes, dba, and whatnot, and then take only the jobs she wants to do, has time to do around her family commitments as a wife and mother, etc.... I think I made the point clear that the wolves are hungry for photos on CDs and will nicely pay you NOTHING to get them.
I am out of the business now, but when people ask me to take their pictures, I don't commit to anything until I have talked to them a bit and ensured they know what all is involved. Additionally, I don't accept money outright, but if they drop a check in the mail, I don't send it back as well. I simply ensure I take only jobs with friends and family so that I can enjoy the time and if I don't deliver, there isn't any love lost.