In the very early days, software companies had BBSes that they distributed patches through. Then it was FTP sites. They usually offered the updates on floppies (and, later, CDs) as well, but that wasn't what they preferred you do.
But there are two main differences that make me think those days were better -- such updates weren't needed as often as they are now, and you could choose whether or not to apply a particular update.
These days, software is often shipped half-baked because they rely on the ability to update frequently over the internet. And, partially as a result, software tends to demand an internet connection or at least regularly phone hone if it has one -- and it's often hard or impossible to skip an update.