Most of the folks I know doing CDs, or at least as common, EPs, have two concrete reasons, and they are to have some "merch" to sell at gigs, and to open some doors at venues that may have that as a kind of "check-box" on the list of things they want the acts they book to have. The latter is getting a little fuzzier with more and more folks accepting streaming as the main form for music distribution, but, still, the folks running the clubs may have some dated views, and it's their venue. (If you don't have a physical CD, a presence on iTunes, Spotify, et al, is still a good thing.)
Of course, there's often some internal motivation that doesn't have any consequence other than "it feels good" I suppose, but I probably wouldn't make that a driver if you're trying to get other folks on board since they don't seem to share that view so much.
Since you don't have a lot of gigs, having "merch" is probably not going to make a big impact, or possibly even pay for the cost of recording, so I'd really consider a lower bar, like a 6-10 song EP or single CD, depending on the length of your material, or, just streaming/download options of "finished" songs.
And, realistically, I think a half dozen songs is plenty, and then do another in a year, but consider getting some studio or live videos for promotion to get more gigs. Whether you/any of us like it or not, "social media engagement" is all about having video, or at least where it starts these days. (I don't think you can get most folks to listen to your music if you don't have a video first. And keep that video short, BTW.)
"... I know in the mornin' that it's gonna be good
when I stick out my elbows and they don't bump wood." - Bill Kirchen
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