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2.88 MB 3.5" Floppy
The highest-capacity format for floppy disks is the 2.88 MB 3.5" disk that was developed by Toshiba in the late 80s. The 2.88 MB offers double the capacity of the 1.44 MB disk by using special media and a special recording method.
If you've never used or even heard of this drive format before, then you are exactly right. :^) It is basically a dead format; I very rarely if ever see it used. The exact reason why is anybody's guess, but these three factors weigh heavily in my mind when I consider why it might be that nobody uses 2.88 MB floppies despite the fact that everyone hates the small size of the 1.44 MB floppy:
Of course the old standbys of "poor marketing" and "overpriced hardware" could have been contributing factors as well.