Usage has not reduced, it increased. USB flash is cheap, reliable, practical, with evergrowing capacity, and it already killed several technologies on it's path (floppy drives, zip drives, CDs and DVDs, on it's way to kill other types of removable storage as SD cards, etc..)
I have a few, one is on my key, but i only use that when i need to transfer small files from my iMac to my Macbook pro, but like you said it iv been using Google Docs and dropbox to transfer majority of my files.
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