This is an interesting approach, but as previous commenters have noted, iTunes already is a database... and if you're going to take the time to insert all of your CDs you might as well spend the extra couple minutes per disc to RIP them to Apple Lossless...

Then you can access all the music on those CDs right from within iTunes - and do really useful things like play it back on the computer, over your wireless network to another device with home sharing, or even stream to the internet... rather than having to hunt around for the jewel box and insert the physical disc into a CD player.

Mind you, iTunes has become somewhat bloated such that accessing your music from CD in this fashion won't be as quick as the method outlined in the original hint (which I'm positive could also be automated in several different ways) but it would be a heck of a lot more useful.
g=