Dov Isaacs, Adobe Principal Scientist, and maybe the most knowledgeable person about this at Adobe wrote this in 2008:
"(1) InDesign 4 (=CS2) attempted to avoid CID encoding as much as reasonably possible, but there were no changes in this for InDesign 5.
(2) Use of the Distiller to produce PDF either from InDesign or any other application does NOT guarantee that you won’t get CID encoding. In fact, the Distiller uses CID encoding for optimization its conversion of PostScript to PDF.
(3) CID encoding has been an integral part of both the PostScript specification since 1996 (although it is supported by most PostScript Level 2 devices) and the PDF specification since PDF 1.3 (Acrobat 4 – 1999). In reality, if a print service provider (or a content creator) is using software that is NOT CID-encoding compatible, it is saying that software is being used that is also most likely incompatible with ICC color management, transparency, layers, and JPEG2000 image compression. This is a recipe for disaster for print customers. If your print service provider has problems with CID encoding, you should seriously question whether your print service provider is competent to handle your 21st century print needs with 20th century workflows and tools!"
For reference, see this InDesignSecrets.com posting in 2008:
http://indesignsecrets.com/cid-identity-h-fonts-are-back.php
Dov's opinion is written in the comments.
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