I would guess that one problem with this approach is that in 1994/95, the setting for the existence of a floppy drive in the BIOS did not always work properly (

I would guess that one problem with this approach is that in 1994/95, the setting for the existence of a floppy drive in the BIOS did not always work properly (and sometimes there was no setting for "no floppy"). Therefore, if windows tried to check for the floppy on boot when you had no floppy installed, it would hang the system for a long period of time.