Qubes OS is a free open-source operating system that’s fully security-oriented. It leverages Xen-based virtualization, which allows the user to create, use and delete easily isolated compartments ...

The most practical ways to move an operating system installation to a different hard drive are to either restore a system image or clone the old drive to the new drive. These methods will make a 1:1 ...

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.