Retail option for optical media phobes. http://www.bit-tech.net/news/bits/2015/06/24/microsoft-windows-10-flash-drive/1
The company I work for, Symantec, did this couple of years ago as an experiment, when netbooks were on the rise. It didn't catch on. BUT. This is a different situation here, as it's an operating system. That said, why would anyone bother with buying in retail, when you can just grab iso from official site and follow dead-simple instructions how to create your own bootable windows installation pendrive?
Never discount the power of laziness. Why go through the (tiny) hassle of downloading an iso and setting up your own stick when you can just have it arrive ready to plug in via the letter box. Since you need to buy a license anyway...
I do all my OS installs off memory sticks, very convenient. Like many others, I don't even have an disk drive.
As other people have said, not everybody has ultra-fast broadband - it currently takes me about 3-4 hours to download a standard Windows ISO on my connection. If I could nip into town, I could buy a Windows thumbstick and be installing in 30 minutes or so.
While I can see what your saying, you have to realise the vast majority of people out there would struggle to find a guide on creating a pen drive and of those that did a lot of them would fail to get a working drive. Most would just write off the endevour as too complicated.
This. These are the people who want to go into a PCWorld, buy physical media and follow the instructions.
Me. I am that lazy. I read the article and thought brilliant that will save me having to make bootable usb drives. You have to appreciate that for many people like my brother even following simple instructions to do something on a PC scares him to death. Couldn't see it in the article but I assume these won't be usb 3.0 drives?
It shouldn't really matter if people did only want it because they're being lazy - people are paying for it, so why not offer what they want? No-one needs take-aways to deliver food, actually, no-one needs take-aways at all - people just like the convenience and are willing to pay for it. Why not in software? And when I buy something I do like to hold it in my hand, it makes me feel as if I actually own it - as opposed to just renting it for a bit...