True.  Write-protected flash drives do exist - I have a 512MB one I
use for booting up cleaning tools, for example.  Put a
tamper-resistant sticker over the switch for software vendors.

I know some AV solutions for Windows have come via USB sticks -
netbooks and similar sized machines are enough of a market without an
optical drive to make that a useful feature to have.

I know I'd pay an extra $5 for software to come on a reusable disk, as
opposed to a single-purpose DVD.

I only burn ISOs for old OSes (XP and the like) - or for machines that
won't accept USB boot.