If you have the source of a program, you normally wouldnt even need the binary since you can compile easily from source (but if its a big package, then you probably dont want to compile at all because it takes so long... compiling all of kde can take a full day easily). A program like htop is quickly compiled though ... :)
Also dont forget that a DVD would take longer to install and if you have a listing of all packages you need on a DVD, you can mount the DVD after the CD install and just install the packages quickly too
In the past i loved DVDs because you had everything on it, but a CD is better since its install is a lot faster, and you can install what you need afterwards anyway (I have around 10 Gigabytes of source on external usb hdd's)
should there maybe be a system setting to say for example, turn off net downloading, where it will only check the archives folder and if not found error message, where if turned on would act normally. i say this because sometimes there is a problem with downloading, like my whole family shares 1GB of data for upload/download per month.
Can what? InstallPackage accepts a file as input, so those can be anywhere on the filesystem (or on a cd/dvd). For compilation, you need to place the source tarball in /Files/Compile/Archives and recipes need to be unpacked into /Files/Compile/Recipes, then you can compile any app using the '--no-web' option, e.g. 'Compile --no-web libpng'.