Just curious, can anyone tell me what causes this on my rotors?

Halfkiddio

That is the start of hot spots. Carbotech's are bad about that, especially when you daily drive them, since I had the same issue with my 10/8 combo.

The noise issue will be present with Carbotech, no matter what compound you go to, unless it's the Bobcat pads. If you want to cut that down, look into Endless ME20's. That's what I currently run. They are almost completely quiet, half as much dust compared to the XP's, and are better on the rotors so far. I might suggest going with a ME20/22 front/rear pad setup to get less bite in the rear, since you might not like what I prefer.

You can talk with John Thomas at Corner3 Motortsports for pricing.