The problem with most virtual drive software is that they either don’t support a wide array of formats or the usability isn’t practical. Take MagicISO Virtual CD/DVD-ROM for example: it supports a large number of formats, yet it doesn’t add an entry to the context menu, doesn’t associate those formats with the app, relies on a systray icon and i have to click 6 things just to mount something. DT is another example: doesn’t support many formats, the usability could be better, etc. Regardless if a format is popular or not, there comes a time when someone might need it. What’s the point of making yet another virtual drive app if it doesn’t do better what apps like it already do?
As for descriptions of these formats, I don’t entirely understand what you mean by a “detailed description,” but here’s a start:
Disk images: IMG,IMA/IMZ
CD images: BIN, BWI/BWT/B5T/B5I, CDI