They just never connected these things to each other. It could have been a great standard and we would have been plagued to this day with them. :)
In some ways it's even better than USB flash. There are no read-only flash drives, for instance. It's also a problem that you mosh "data" in the same port you mosh "keyboard" or "spy device". We gained a lot with the USB paradigm but we lost some things, too.