I have talked to Eric at Hopeless about this before a few times. I think it's a terrific idea to make CDs more limited, especially since Hopeless amounts to a "mid-major" record label (if you think in college football terms). They have some high-charting bands and some smaller bands. This is a way to avoid pressing a huge amount of physical product in a time where CD sales – not vinyl sales – continue to decrease.
It also makes the CD appear more valuable, which makes it at least somewhat enticing for the generation that's buying vinyl now.
Is this the way we'll see CDs slowly phased out of the marketplace? All Time Low is Hopeless' biggest band, so trying this with them first is interesting.
Limited creates urgency and demand - its basic marketing. You buy it because you respond more to the negative emotion - the fear of not being able to own one in the future, not because of the positive emotion of owning a limited copy. Regret is powerful in sales and it usually works with anything in the music scene - vinyl, prints, t-shirts, small venue shows (you may not like a band THAT much, but you don't wanna miss the chance to see them in a small venue and kick yourself when you see them at a large venue and like them a bit more - that is more potent than being extremely excited because die hards will often buy regardless and the goal of campaigns like that is to increase the reach of the product not in terms of how many people CAN buy it, but in terms of increasing the positive decision of buying instead of not buying therefore creating increasing the speed in which this sells out.
I have had 12 shots of espresso and you just gave me an example for my thesis for a paper I have to write. Word.