Thanks again for all the great advice.
I did some very fast research, and here's what I found:
I've heard about this newly released beauty of a recording from Radiokijada - "New Sounds From Black Peru", and am interested in buying it it.
My local shop would have to order it - about 18 Euro.
HMV, posted to Ireland - 14 Euro
iTunes+ download - 9.99
Amazon.co.uk, posted to Ireland - 10.86
So, first lesson... huge price variation, it's worth shopping around.
Second lesson... it is definitely possible to buy a hard-copy cd for similar money to itunes download right now, thanks to fall in sterling. And based on the sound advice in this thread, I'll be buying the cd!
That's just one cd, with a quick search, so I expect that on average there's plenty of bargains to be had, even better than this example.