Atari released a limited supply of the Unreal Tournament 2004 DVD edition and it sold out before the game shipped which seem to surprise them. I believe there is a big demand for games on dvds.
The reason I like dvds is because during installation you don't have to stay at your computer the whole time waiting for the please insert disk message. You can go do something else while it is installing.
Of course it took games coming on 14 or more floppies before developers started putting games on CD.