I'm ashamed to admit that I didn't own a 1541 until early 2009. I was a cassette lamer.
So for Easter 2008 I have handed in a commodore 64 executable music entry on cassette at breakpoint. I think they were the last to require entries to be submitted on physical media.
In the years after I still used a lot of 5.25" and 3.5" on my c64, Amiga and Atari.
Today I have a turbo chameleon 64, a c64 ultimate and a gotek drive on my Amiga. I don't miss diskettes.
As for USB drives. I got one for Christmas 2001. It had a whopping 32mb of storage and required proprietary drivers to mount.