I've just been using floppies to boot Ghost over a network - hard disk crash forced a convoluted repair. I discovered it's not easy or straightforward to get a 40GB XP system partition from a 160GB disk onto an 80GB disk, but I managed in the end*.
I find it much easier and cheaper to create a boot floppy (editable, re-usable) than a boot CD, even on CD-RW media.
I've still got a bunch of them (maybe 50 or so), but threw out a couple of shoe-boxes full 10 years ago.
As I say, it's still useful, although Keef is right that it has nearly reached dodo city.
SD
* For anyone interested, I achieved the result by finding a disk imaging tool that allowed the 160GB disk to be cloned to the smaller 80GB disk (Seagate disk tools, based on Acronis), reducing the size of each partition accordingly (providing that the total of used space in each resulting partition could still fit).
I then booted the system with XP CD, ran an install\repair, then mounted the 80GB disk in another system, deleted the non-system partition and used a partition manager to expand the (shrunken) system partition to occupy the entire disk. Job done.
I had previously tried (and failed) to copy the 40GB partition directly to the single 80GB partition on the smaller disk - the clone worked, but would not boot, even after re-writing the boot sector, MBR and XP boot files.
I tried a few other things that I won't bore you with, as they didn't work, although they seemed initially promising.