I thought the reinstall disk was a wonderful idea... which is why we requested it (and paid to have it added) way back in version 4.0
Better stop now, lest I start to sound like a bit "Dick-ish" ;~)
As to your question, yes, you can also create a CD. Follow Darrell's how-to on contribs.org.
For SME 6 you'll need to
-- copy ./images/boot.img to ./images/cdboot.img
-- loopback mount cdboot.img
-- modify the syslinux.cfg file (see bootnet.img for hints)
-- use cdboot.img as the boot image for mkisofs
Then modify the install/update kickstart file/s to mimic what happens on the reinstall floppy.
You will no doubt have a few tweaks here and there, everyone does, but that's the basic process.
Tweaks? I add the current SME updates, replacing the older versions, and also add things like the IBM Broadcom drivers, the Java2 Runtime, and a number of other goodies. You can add these to the ./e-smith/base/comps file, or you can put them in the %packages section of kickstart, or you can use the %post section to load them. I also install a number of custom templates, control panels, and scripts that I have written -- that are specific to my business, so don't ask for them

Except that I have to function in both US and Canadian installations and so need the language and time zone options, my boot CD is pretty much soup to nuts automated.