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They adopted the system in 1998, when actually floppy floppies were already obsolete. Oof.
It's called proven technology sweaty.
CDs were released in 1982 and pretty damn stable. One year after 3.5 floppys.....6 years after 5.25 floppys.
ISO 9660 wasn't around until '88, and even then, its read-only capability paired with high costs wouldn't make it viable until maybe a decade later ... ironically, around the time the system was deployed.
I mean 1989 was the last time I used a 5.25 in elementary before everything was switched to 3.5 with the IBM Model 30.
I know I was still using 5¼" floppies at least a bit into the early '90s, though it's been long enough that exact years elude me.
I was also still developing technology that used 3½" diskettes well into the first decade of the new millennium - though I finally managed to migrate newer systems to CD-R around the end of that decade.