Some hungry nerd somewhere really needed to take his bagel with him to a meeting, and thus, the CD Bagel Holder was born. We don't know if the story is true (it's probably not) but it's only slightly more interesting than someone looking at his bagel, looking at his spindle, and wondering aloud whether it would fit.
It's a fun idea except for one thing, that CD holder is not very likely to be made from food grade plastic. It might be, but not likely. Food grade means it doesn't contain dyes or recycled things harmful to humans. If it's a CD container, I don't think they went out of the way to get certified for that.