Remember when it was a big deal if you chose .zip, .rar, or 7z, etc? Now we all have so much bandwidth it doesn't matter.

Depends on what you're doing. Dumps of multitrack CD media should always be bin+cue or a compressed version thereof, such as chd. DVDs and Blu-rays can dump as iso. There are also some extremely niche cases such as specific copy protection that require mdf+mds for a proper dump, but that won't be something the average user ever encounters. Basically, those formats exist and are still used for a reason, whether you understand them or not.

I do reserve some hatred for people who dump PS1 games as iso, or who use ccd+img+sub for things where the subchannels have no valid usage.

1:1 copies of the bits on the disc is a valid option that some people prefer. Especially if you want to make your own physical disc or make compressed files encoded in a very specific way. It's also the most reliable way to archive a disc for long-term storage.