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"Are there even people out there still using floppies? I've barely seen a floppy for several years"
I have still quite a few "rescue" floppies, even if I have tried to put the majority of them on a CD.
Typical example: Partion Magic (rubbish, I know) still refuses to create a rescue CD. So even if I own a legal licence, I had to download an iso so that I could make a rescue CD.
Also floppies still seem to be the only way to make some operating systems bootable (a typical example was Slackware until 9.0, if I remember correctly).
They are also necessary for older systems which can't boot from CDs.