My workplace has them. The same thing happens in every freaking machine here: 1) insert quarter and 2) nothing. I don't think I've ever actually received a pad or tampon. ALL of the machines in the whole flipping building do it.

Pads are also great for soaking up spilled liquids in the car. I always have a few stashed in my glove box.

Slightly OT, but if you do have pads with you, they also make pretty good shoe inserts if you're stuck in an uncomfortable pair of shoes that are trying to give you blisters.