I remember the old 5 1/4" ones. I remember how my first computer (a 286) would only take the 5 1/4". I thought the 3 1/2" ones were so cool. Much more durable and reliable than the 5 1/4" ones. I also remember having an argument with a girl in a computer class back in junior high who insisted 3 1/2" floppies were called "hard disks", because of the plastic casing and because they weren't 'floppy'.
Everything of value I had on floppy I copied over to CDs, like Windows 3.11 for Workgroups, DOS 6.22, and some other old stuff. CD-Rs don't last forever either, so I also keep ISO backups of the CDs, should I ever need to remake one. As a tech, I've more than once had to pull out that disc to fix some old machine.
I always ask when building a system if they want or have the need for a 3 1/2" floppy drive. I'd say 75% of the time people don't want them, and of the other quarter that do, most probably don't use it.
I'd say the invention of flash drives has really done floppy disks in. They're so cheap now, too. A lot of companies here give flash drives away with the company logo on it as a promotional item. I've got several 256MB ones from various places. I picked up a 2GB one for $3 at IT City (they're kinda like Circuit City in the US).