Jesus Vigo goes over the steps to create a bootable USB to install OS X 10.7-10.8 and OS X 10.5-10.6, as well as how to put multiple versions on the same USB. With the advances in technology, faster ...
I think the reason we haven't heard many complaints about the doing away of physical media is exactly this. As long as power users can make their own offline media, there's nothing to complain about.
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