I wouldn't be against this idea if
a) the catalogue of titles available wasn't simply a duplication of the existing stuff they're trying to flog, but a full catalogue of anything and everything that has ever been released
b) the service allowed for "pick and mix" compilations as well as reproductions of the original albums
c) the price of each track/disc was reduced in recognition that the disc you're buying isn't a factory-pressed original with an expected lifespan of several decades, but rather a CD-R with a generally somewhat reduced life expectancy
"Does it think becoming another technology reseller like PCWorld/Currys is going to save it"
To be honest, I think they're in with a reasonable chance. I had a browse in their revamped Westfield Shepherds Bush store recently and was pleasantly surprised. All the tablets and laptops I looked at were powered up and unlocked, giving customers the chance to have a proper play with them, as opposed to the policy in certain other stores where everything is stuck on the password entry screen so all you can do is wiggle the mouse pointer around and get a vague idea of the screen quality based on whatever static image it happens to be displaying. And given the sorts of locations they've got, they could appeal to the impulse buyer doing a bit of window shopping in their lunchbreak where the sudden urge to buy something right there and then could override any thoughts of "ooh, let's just check it out here and then order it online when I get back to the office/home", whereas the out of town warehouses operated by DSG/Comet don't have as much scope for grabbing that sort of customer.