Mounting images as virtual drives gives you some interesting benefits:
-You can test your image files before burning them to CDs
-You can copy your original software as image file and run it from it. This improves usage speed a LOT and this way your orginal CD doesn't get worned out
-You can keep important CDs handy as image files for exp. in your laptop.
Daemon Tools is able to emulate most copy protections, so they won't keep you from taking the advantage of virtual drives.
I have worked with this tool a little and I must say that I am quite impressed.