I got a great deal on sony cd's and dvd's at best buy a few months back. I use them if a friend asks for a program or movie etc, just cause there so cheap. I have flash drives that I could use, but I don't want to give them to people and wait to get them back.
When I was taking a film class, I would burn my projects to dvd's so I could give them to friends for feedback, but the quality suffers a lot since I shot in HD. Personally I think blu ray is a must feature in our hd world, but those damn blank blu-ray prices are just too damn expensive. Although, I don't think burning blu-rays is something everyone will need. I never really burn movies for my self since I have a ps3 and a large external hard drive.
The only music I burn is for my moms car when I don't want to deal with the fm transmitter. If she had an iPod adapter or cassette player, I probably would never burn music.. ever. I think the iPod killed burning music. It didn't necessarily kill music cd's however, because when I do buy a cd (that I can't find online), I would rather spend the money on something physical, that I can rip, rather then a digital download. That's just me.
I think the world isn't completely ready to lose the optical drive, yet.