In the CD vs. LS120 debate, I agree that CD burning wins out. It's not even worth discussing. But LS-120 drives own those freakin' Zip drives. I mean, c'mon, similarly-sized large disks, AND backwards compatability with floppies (for things like boot disks). Zip drives, like someone else mentioned, just had better marketing from Iomega. I for one enjoy disabling my FDD controller and just relying on IDE.
Removable media such as this still has its place. Want to install a patch or something that's about 50MB? Let's see...get a CD-R, start up the software, set it up, let the thing burn and burn, then take it to your friend's system down the street (let's assume you don't both have broadband so transferring it isn't an option). Or, grab an LS-120 disk, drag & drop the contents, and GO.
I'm in no way saying that LS-120's or these new 240's will replace or even in the slightest way threaten CDRs. It's just another media and the LS-120's are a lot more reliable than the old-fashioned floppies, but it's nice to have backwards compatability when you need it. Though if you need another LS-240 drive to read the new 32MB floppies, why one wouldn't just use the 240MB disk is beyond me...