This practice got more and more awkward as the number of Macintosh models ballooned, and was largely abandoned by the early 90s (too many machines, and groups got file servers and ethernet instead of floppy disks and localtalk).
It was fun just reading the code; it was really well-commented, and nearly every line had someone's initials on it (spot a bug? track down the responsible party and talk about a patch...)
Developing software without source control is difficult to imagine now. ("We do have source control, his name is Mike -- just give him a floppy disk with your changes and some instructions on how to integrate them.")