We're going through our collection of floppy disks and rescuing the data from the degrading magnetic disks. It makes me sad to think that the old disks are just wearing out.
I used floppy disks into the mid-2000's, and still have a 3 1/2 floppy drive in my computer. I even used it recently to try to install MS-DOS 5 in a virtual machine.
I'd say one of the biggest problems with floppies is that files have outgrown them. About the only thing that fits on floppies anymore are documents and text files. Anything remotely fancy will take dozens of floppies, if its even possible. Half the time CDs aren't even enough space.
Maybe I'm just old school, but I'm not complaining, especially not with the marvelous tick-tick-tick of the AT keyboard I am using (with an adapter).
They say that a three-year old can use Windows 8. I say that's a bit of a regression. When I was three, I could use DOS.