I love my USB drive - it's only 1GB, and I don't use it to transfer files around between machines (I have a network for that), but what I do use it for is a backup of my important files that I can pick up and take away with me (it's on my key ring, so it's hard to forget).
I also keep a copy of my resume on there, just in case while out on a job I need to hand it out (and I've done that a number of times).
However, I can also appreciate that in a typical company, especially when most companies have removed or disabled their floppy drives, allowing individuals to use USB drives is not a good idea. From the simple angle preventing the introduction of viruses and trojans, through to the more complex problem of preventing individuals stealing software and company information.