And students may have gotten some minimal, non-zero utility from it, but almost everything they would have been doing at the time would have fit on a floppy disk just fine. Maybe two. The Zip drive was slightly more convenient... for about $150 more. Aroud $300 inflation-adjusted.
That's not $300's worth of value, and especially not $300's worth of value for a college student. I can manage a couple of floppies and "that one time I had a really big project" for $300 as a college student.
Yes, I'm sure you have a story of that one guy who had an 80MB project that fit no other way. But think of all the people who had 96% empty drives because all their documents were tiny that don't come to mind.
You will note that there was no cohort of people coming out of college demanding Zip drives everywhere else in the world after them, because I doubt very many of your students came away with a strongly positive impression of the Zip drive, even for those for whom it worked perfectly.