We are getting way off topic here, but the reason they were "cut out" was to be sold as damaged goods. Damaged goods didn't qualify for RIAA sales or for artist & songwriter royalty. That's why they could be sold so cheap. No one got paid except the label and the store. It's built in to the contract. So yes, cheap music is great, except it rips off the people who make it.
Ah, so it worked like it did for magazines at a smoke and magazine shop my dad used to drag me to as a kid. He would buy copies of the previous month's mystery and science fiction pulp magazines, all of which either had half-covers or covers completely torn off. I assume these were unsold copies that the shop's operators weren't returning to the distributor but damaging so they could be sold for pennies.