Read this thread, you're not the only one having this problem. I don't intend on being one of them since there's no way I'm going to buy a hard copy game that has an install issue like this. If buy a disc, it will install from the disc. Period.
http://www.gamesas.com/index.php?/topic/1122609-have-cd-steam-downloads-anyways/
Actually, I was one of those people. I have now completed 10 plus installs. I have a ghost image I keep restoring of a fresh Windows XP SP3 install with nothing but drivers and Direct X 9 installed.
At this point, I believe that the game always does install from the CD, but there is a strange bug in the installer that makes it crawl like the CD is running at 1x speed. To prove to yourself that it is actually installing from the CD, disable your NIC during the install process. You'll see that the numbers continue to climb.
On my original install, I would have sworn it was installing from Steam because of how slow it went and I couldn't hear my CD drive spinning or lights flashing. On one subsequent install since, it did the same thing, but I disabled my NIC and it continued. When I opened the CD drive, the install stopped until I closed it again.
On all of my other installs, I can hear the CD drive working and it is installing from the CD. I'm am following the same procedure every time. There just appears to be some kind of occasional bug in the installer that sometimes makes the install crawl when installing from the CD.