My company sells them and the've been selling extremely well. The movies that are selected for sale in this disposable format are movies which have already gone through their initial sales run (Pirates of the Carribbean, Under the Tuscan Sun, etc...). Many people are willing to shell out $5.00 so they don't have to worry about late fees or bringing the movie back at all. Once the package is opened, the films only good for 48 hours. But it can sit on the coffee table for up to two years not building up late fees.
I haven't tried to burn one yet, but I'll give it a shot.
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Bad Luck City
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