"what do they do with the holes when they remove them?"
really, joybell! why don't you THINK? look at any CD. it has a hole in it. the holes have not been removed: they have been INSTALLED. if you want to get a bag of holes, you have to find a hole retailer, or go straight to the hole manufacturer. and i think you'll find that they are not just useful in CDs. i've found hundreds of uses for them around the house. you may have to do a bit of shopping around, tho, to make sure you get good-quality holes. the shoddy ones wear out after a while, especially if they get a lot of wear.
o.p.