I see lots of workaround ideas for the lack of a new DVDSP.

But I don't know why you can't just export a QT file from X, and then use Compressor and DVDSP from FCS 3 to build a DVD with menu.

Am I missing something here?

No, you are not and that's how I work. Unfortunately the chapter marker support in FCPX is lacking so it's a bit more involved than from FCP7. Not always a big deal but an inconvenience at best, a big problem at worst.

Alas there are people coming to FCPX who did not have FCS.
Although I'm finding the only requests I get for DVD (which is becoming rare) is for screening copies . . . as I can easily deliver a great HD file which can be played on HDTV and that's what my clients are asking for.

This is great news to me. My clients need a tangible product to give away or sell, so it's still DVDs. And adding chapter markers in DVDSP has worked fine for me.

If you already have DVDSP, there's no reason why you can't (or shouldn't) use it.

Same goes for Encore.

File doesn't preclude sales. Many people sell their media by file download these days.

While there are certainly those that still sell them, the motivation for a developer to continue R&D or sales and support on a market that's disappearing makes business sense.

As someone involved in production/post I'd generally recommend against DVDs for my clients unless there's a specific market that they must be used to reach.

I kicked a major client into BluRay this year and they appreciated the improvement in quality. Authoring has become a very small part of my business as most clients just want QuickTime files or simple screeners now.

Most end users in my audience (my clients' clients) want a tangible product, and many are more likely to have a DVD player than broadband internet or Blu Ray. I see where the trend is going, but I'm not dealing with cutting-edge people here.

William, that's been my experience as well.
DVDs have been such low quality. There are easier, more cost effective, higher quality methods of distribution.

The only issue is when one is targeting people with very poor internet connections so they have limited to ability to view HD online or download.

For presentation from a "player" I'm more often using on a file player device which can even be an iPad or equivalent with 720 or 1080 play out to an HDTV.

Blu-ray is "interesting" in that, these days, I'm wondering about its market penetration vs iPads (or any tabled that can play HD to an HDTV). I don't have an answer but I do wonder about that.

For immediate viewing it's faster to send someone a link than go through any shipping process.

It's faster to deal with file compatibility issues then it is to deal with someone coming back and saying your disk won't play in their player (yet it plays fine in everything you tested it in).

Some might want to hand someone something "physical" but you still don't know if they've played. On the other hand, with some advanced online analytics you may be able to tell if the person actually played or downloaded the file.

Yes there are certain target markets where a disk might be more appropriate such as where internet connections might be poor, an agency targeting a lower income bracket or economically depressed area, an age group less likely to be online connected.

Broadband market penetration must be around 90% in the USA. A recent study shows that 61% of USA households have WiFi networks. This no longer cutting edge but very much standard. Yes there are pockets based on economics are certain low population density areas but they are decidedly the exception, not the norm.

PEW and other organizations have a lot of documentation on these numbers that I can dig up at some point.

You can even check Netindex for real world speed results for just about any area and any provider in the world.
Net Index by Ookla - Household Download Index for United States (http://www.netindex.com/download/2,1/United-States/)

Many movie theaters now have a decent BluRay player for special content playback on their digital projectors but that's a for a couple of my clients only. Most other clients want DVDs still. Or QuickTime for presentations.

Check out the Rockwood FCPX Marker Converter. Uses XML to export the chapter list as a text file. Works really slick and is free!

https://github.com/rockwood/fcpx-Marker-Converter