CD-R's are NOT less stable and "short lived" than pressed CD's.   CD-R's ARE prone to damage from scratches and damage from sunlight, but there is nothing inherent in the medium to make it inferior to a manufactured CD if handled and stored properly. They will last just as long.

CD-RW's - the rewriteable kind - will have problems in some players. CD-R's will play in MOST decks, but as you mentioned some of the early CD players may have problems reading them.

There are several advantages to CD-R's, but it is always the case of "the buyer beware".   As an artist, you are probably saving considerably by pressing CD-R's. Most replicators will not handled "pressed", or manufactured CD's, for runs of under 1000 pieces. If you are honest with your "clients", and replace any that may have issues playing, you should do fine with CD-R's.

One consideration is airplay. SOME radio stations will not accept CD-R's. This is mainly due to the issues with scratches and mishandling that is common at radio stations.

You may wish to shop it around a bit.   Prices vary greatly, and you might find some companies that will do runs of 500 copies for a reasonable price.

Ron