I can envision that as a very good, inexpensive, backup solution.
4GB on single-layer media, and 8GB on dual-layer.
Media cost would be mere pennies, compared to tape media.
USB ?
no way.Transport speed would be agonizingly slow.
I don't think USB is active until a later point in the boot process, and requires some OS interaction, so it wouldn't be a viable boot device, nor a troubleshooting drive.
That means you keep the internal DVD-ROM, else Jumpstart (or both).
SCSI ?
Very good data transport speed, but not a hot-plug device.
That would eliminate such a peripheral from being considered for a
"one optical drive for 100's of systems in the datacenter" scenario.
It <i>would</i> be a bootable device, though.
Both connection methods would likely need a custom device alias in OBP.