The primary reason we choose Kickstarter was because we wanted to make the highest quality product, available at the possible lowest price. To achieve this goal we partnered with a Los Angeles based CD company and printing house.
Our publishing partner's basic rates were half that of their online counterparts, but most importantly of all they had options for multi-panel insert booklets, something most on-demand services lack. For the price of a single CD from an on-demand service we could get the same CD + 8-panel booklet.
The downside of course was when you go the self-publish route is the large amount of up-front capital needed to make the minimum production run. Thus the need for a Kickstarter, we needed a system that could solicit donations and pre-orders to the general public, but also had the flexibility to NOT take money if we couldn't raise the minimum required to go through with the project.
We didn't want to start taking PayPal donations and pre-orders, miss our goal, and then be left stuck holding other peoples money, but unable to fulfill our obligations to them. Kickstarter makes sure we have raised enough money to do everything we promised BEFORE we accept a single cent from our backers.