I use an A4000 with a Deneb for my main "real" Amiga and the Deneb is a lot faster than the A1200's solution. That said, once you have USB it is hard to live without it. I use an external HP DVD+RW drive and I connect to the Internet via a $20 USB Ethernet dongle.
It works fine for me, but as I said, I'm using a Deneb.
It is handy though to keep a backup of all of your essential files on a USB memory stick just in case your hard drive goes down and you need to reinstall.