Ebay vs. Musician
The guy's entire problem seems to be the snottiness of his letters to ebay and his own robotic insistence on putting "CD-R" in his description, which then gets flagged by Ebay's own robots.
Just call the thing a CD. Lots of bands sell CD's at live shows and when you get them home they turn out to be CD-R. They work fine in almost all players. If someone complains, give them a refund including shipping costs. But really, hardly anyone cares. The first time I bought an artist's CD and it turned out to be a CD-R, I didn't think "I've been gypped!". I thought "wow, cool, I'm really 3733t for liking this obscure band!".
If you really want to mention in the auction that the disc is on recordable media, then do that. Just say "this disc was personally duplicated on recordable media by the artist and copyright holder and is a fully legitimate copy". As long as you don't use the magic letters CD-R, EBay is extremely unlikely to flag the auction.
Sheesh. There are plenty of battles that need to be fought. This isn't one. Just change the wording in your damn auction, sell your damn CD's, and then get out in the streets and protest about something that matters.