Plenty of systems still use them, but the equipment isn't critical. They are usually only found in jets and medical equipment. Lulz. I would suspect that lots of older manufacturing equipment uses floppy disks as well.
The logic goes that it's cheaper to pay top dollar for legacy computer parts as replacing the actual machine costs millions.
I can’t imagine it would be impossible to create something that uses the same protocol using a raspberry pi pico or similar. I see some exciting USB drive based “floppy drives” on Amazon for like $30 already.
Boo. I miss floppies and everyone complains about Japan being "behind the times" on some things but honestly, only in ways that are cool or good for civilians' privacy.