When you purchase a new MacBook Air they give you a mini-USB drive that is used to reinstall OS X and iLife '11.
How can I format this USB stick and put whatever I want on it?
The option to format is not available in Disc Utility and the USB stick mounts as a CD.
Note: I realize what the disk is used for and what Apple says on their FAQ. My question isn't "What do you think about formatting the USB?" it is "How can I format the USB?" The answer may be that it is impossible.