I am ignoring wheteher it's irrelavant as to wether it's cheaper to buy the CD or pay telephone bills downloading these files yourself.
And also ignornig the contents of the disc.
In my opinion it is still a con.
He's doing one of the following which is not helping this scene at all:
A - Selling "abandonware" (old COMMERICAL games). The games companies might turn a blind eye to people downloading XXXXXXX, but if they see people selling it on CD's on the web or in markets they will not be amused - and surely if anyone profits it should be them ?
-- or --
B - Selling freeware or shareware at vast profit. Most authors allow you to sell their programs for a reasonable cost on a PD disk/disc - e.g. the old PD houses. But to sell a 50p (max) CDR of someone elses work for £8+ is despicable. I'd say a reasonable charge would be £2.50 + shipping (£1 to UK).
Maybe he could be forgven if he also offered a link from where to obtain this stuff online yourself as only the lazy, narrowband or stupid people would pay and the rest of us could download.