I hope this isn’t too late!
But yeah the playlist lets you personalise. The CD provides the playlist with a physical form you can give. And I don’t know about you but I like to collect paper/card scraps from magazines, brochures and packaging, which can be used to build a CD sleeve if you’re crafty.
I did this for a Secret Santa in my high school friend group and everyone said my Secret Santa-ee got the best gift >.<