I'll post a further rationale, but in sum I've had the 1-CD debate with myself and 1-CD wins. Basically just going to a second CD doesn't gain much, if you open that door you basically go to 7 CDs... The "1-cd" thing totally rocks for distributing copies of BLAG for others. It also forces me to keep bloat out.
Also, `apt-get dist-upgrade` doesn't put too much of a hit on the server. The server's load is quite low. Bandwidth is a bigger issue, and a bunch of smaller apt-gets take less bandwidth than a full .iso download.
Perhaps we can convince one of the companies that is selling BLAG CDs to also sell BLAG DVDs. There is a list of these groups at http://www.blagblagblag.org/download/
Also, even if you can't actually burn the DVD, you can use it for net installs/updates of existing systems. Granted, 'net installs aren't possible for most newbies, but if you grok it, it's a great way to get a whole network up-to-sync.