Floppy is the only universal driver the installer can count of having for storage media, besides the media it installing itself. I always thought it would be smarter if this process allowed you to insert a CD temporarily in the same drive keeping the installer in memory.
I have definitely used OS installers that allowed/required CD swaps, though. Maybe Ubuntu at one point? Now that's a slick setup process. Opening Firefox to read the orange site while your OS installs on the same computer is a great trick.
By the time XP rolled around, CDROMs were common place.
The older style alternative was to wait for special "hardware update" release of the operating system you wanted to install.
I've installed NT4 god knows how many times. I'm very familiar with the process.
NT4 was magical, I remember reading on the jewel case "for 386, Pentium Pro, MIPS, PowerPC, Alpha" or something like that, and the instructions on how to boot the installer - with only PC referencing a boot disk (and having done so before ElTorito that was truly magical for me)