Exactly, you are not selling anything for profit (and wouldn't dream of it) even though I'm sure you've spent ages of your own personal time / efforts creating this. All you've done is made a great DVD that takes all the hard work out for people who wouldn't know where to begin.
Yup agreed, you can very easily get loads of different types of roms for various systems all over the Internet. None of the authors of emulators / front ends or companies like Nintendo seem to care or do anything to stop these websites...
I guess the only real difference between your DVD and mine is that I have no copyright roms or programs like AIAB or other stuff included where as you have kickstart roms. Is there a way you could leave these out and the user would have to add these themselves if they had them?
Anyway, it is a touchy subject... I hope that you manage to find a way to please all parties and then release your project to the world