https://en.wikipedia.org/wiki/Zip_drive
They were commonly used in graphic design, at least. (Designers needed to send files to print all the time, and the Zip drive was the standard until CD-R became cheap and fast enough.)
Thinking about it i wonder if what killed it was not just the CD-R, but also that it went from primary storage (early PC etc) to transitory storage (sneakernet etc) as HDDs took over.
By 2002 LS-120 was already past its peak and even Zip drives were pretty much old news. I think I got my first Thumb drive a year later, with about 512 MB of storage.
I still have the LS-120 drive in my primary desktop, and it was a nice drive. It was quieter than other floppy drives, and had a motorized load and eject function.
"Only one out of every 200 users experiences sudden, catastrophic data loss!" is not the kind of thing you want to hear from your storage vendor.