New
#21
The problem isn't absolute cost of a flash drive ($2-3) vs a dvd (pennies), it's the fact that more and more computers simply do not come with an optical drive. And with the especially heavy push toward thinner and lighter notebooks in the past 2 years, they will continue to be dropped even more. My HP tablet has a removeable dvd drive that I took out day one and honestly haven't needed it a single time in the past year. It doesn't make sense to require an entire device dedicated just for software installation when flash memory is very cheap and even more supported. I'd rather raise the cost of all software purchases by $2 (ignoring the cost savings of a small package) to not have to buy an external optical drive ($75-100).
I wouldn't be too surprised if read-only flash media was offered as a purchase option sometime in the future for Windows 7.