- Today the industry lives off of DVD. DVDs get scratched easily. USB drives... not so much
- Companies are already used to hiding information on USB products (anybody say iPod?)
- More than just a serial number for anti-piracy protection: have a hidden file on the drive that counts how many times a file was accessed (such as a setup program). This isn't possible with DVDs.
- It's not as easy to copy the plastic of the USB drive as it is to copy a DVD label
- More environmentally-friendly: smaller packages since USB drives are obviously not as big as DVDs. For example, take a look at Vista's box... now imagine that wrapped up in a USB drive... much smaller!
If anyone has any other ideas or opinions, feel free to leave a comment!