I've used a camelback for a couple fo years now, really handy. No having to reach down awkwardly for a bottle, can carry a lot of water. The ability to carry 3ltrs is the only thing that is going to keep you better hydrated on long rides or hot days.
Other good thing is I can put all my tubes, tools, wallet, phone, food, and jacket in the bag.
I don't find it gets hot. They are padded nicely to let sweat drain and a bit of air flow, and keeps the sun off your back. As far as the cd....its on your back as the air seperates and goes turbulant, not increasing frontal area. I saw Lance use one under his skin suit in a Tour TT, just had a short bit of tube sticking out. He could drink while still having both arms on the bars, and no lump of bottle on the down tube.
Pros use bottles because they are easy to swap during a race. They carry a small bottle of water and small bottle of sports drink to save weight, chuck it when finished, and the team car gives them another one. Can't do that with a camel back so easily (not as disposable and you'd have to hand out entire packs)
On the mountain bike front, I had a friend do a bad fall and he landed square on his back and burst the camel back bladder and cracked one vertibrae. Would hate to think what might have happened if he landed straight on his back!