This is a great point, but it probably doesn't do the job as well as more modern alternatives.

1. Easy to lose, possible data leak concerns.
2. Easy to retain data that should have been deleted.
3. Easy to lose data if a disk gets lost or damaged.
4. Likely wastes time when trying to track down the disk you need to getting someone to transfer it.
5. Lack of access logs and auditing capabilities.
6. Easy way for viruses to spread.

Modern IT managed file servers solve a lot of real problems when well-managed.

On the other hand, if you use an old technology that isn't being mass produced anymore, it can reach a point where it will become a big liability for a mission-critical piece of equipment.

The most practical reasons are that both the drives and media are getting harder to find.