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I'm surprised that you can't run the installation straight from the .iso file. As long as you're not formatting the partition it's recorded in, it's just a case of a different driver for the logical media. That suggests you couldn't copy it to a thumb drive and install from that, without a bit of cheating.

I have a number of server machines that have no built-in optical drives, and installations that require one are a major obstacle. Network or USB options should be available, even for a desktop OS.