Ok, let's get one thing straight, demos are NOT public domain even if you're allowed to copy them for free. So that means you're not allowed to do whatever you please with them.
I usually have no problem with my demos and stuff being included on DVD's, but I do think the authors of these DVD's should have the common courtesy of asking for permission, especially if they're going to sell these disks, no matter what amount of money is involved. And really, I don't care how much time someone spent on preparing the DVD, because that usually doesn't come near the time people spent on the demos themselves.