It really does suck. Those CD's look and sound really nice but if proper people were not contacted (the band and the label) I will not be putting my money into this. It discourages proper reissue labels.
Just to clarify on certain issues as far as reissue labels go. When I license materials from a label like Century Media I am under no obligation to contact the band. I license from the rights holder and can put out the CD as such. I contact the band to see if they wish to participate if I so choose.
For instance look at a label like Wounded Bird who we have discussed on here. No contact with the bands, just the label licensing from.
However, I am not justifying any other label's behavior by stating this.