#1...Yes, "cut-outs" still exist...albeit in a different form...!
#2...I have so far acquired an impressive collection of Hindsight CD's... for $1 each at "Dollarama" (Canadian listeners take note...!!)
#3...I also acquired ten or twelve cassettes on the "Alligator" label... again for $1 each...at another local "dollar store"...?!
Moral of the story: yes, record labels still have to dispose of stuff that DIDN'T sell (and may NEVER...?!)...! To-day's "cut-outs" are most likely to be CD's...but, there are STILL CD's that didn't...and won't...sell, and therefore have to be disposed of...?!
Check yer local "dollar store," folkses...?!
Steven C. Barr