One other angle occurred to me. Even if you are a performing songwriter - a term I prefer to "singer-songwriter" because it encompasses the instrumentals -- if your songs themselves are where your genius lies (more than your performing or recording skills) -- putting out a passable CD may be one of the best ways to get your songs "out there" to interest others in recording them.    That may be a bigger source of both respect and revenue than performing or recording them yourself for money.
The point is, people can often recognize the greatness of a song from a recording that itself is 'not ready for prime time'.