Yes its a bad thing. Floppy drives have very long access times; so running off of the floppy/saving to the floppy would take a VERY long time to do things.
Actually, the 3 1/2 disks use to be called hard disks, as the 5 1/4s and 8" were actually floppy... Use to be able to double side them with a hole punch.
Im only 22 and ive used both the 3.5" and 5.25" floppies, i remember using them in elementary and middle school. The 5.25" we used to run programs off of (mathblaster i think??) and the 3.5" to save files, such as word dcouments.
The first pc i ever used was an Apple II in elementary.