I first started listening to some of his music thanks to Gillian Welch and Dave Rawlings, who have covered a few of his songs, including Pancho & Lefty and White Freight Liner Blues. (The latter is on the duo's wonderful live DVD.) Over time, I really fell in love with Rear View Mirror, a live collection that Townes released in 1993, only four years before his death.
So, after only one listen, I'd say that Steve Earle's effort is really worthwhile. (This is why I don't write music reviews.) Earle's label, New West records, has a free download of "To Live is to Fly" available here (download should start automatically). Enjoy.