I have a theory, with which and $1.89 you can buy a cup of coffee, that this is only the beginning of a very carefully-planned two-year revolution in technology. Of course everybody expects flash memory to get denser and cheaper; things usually progress by cutting the feature size in half, thus giving you 4 times the capacity. Plus at least one company is bringing out two-layer devices. That takes us from 16 to 128 GB in the same form factor. Now we’re talking! If Apple anticipates storage like that being available in two years, just when the AT&T;albatross is removed from their neck, that would be the time to bring out the device they had in mind all along: an iPhone/iPod Touch combined, that will do everything either unit will do now, probably on the 3G network everybody’s so exercised about, and with storage right between the two iPod Classics. The beauty of it is, all the early-adopters of the iPhone have already paid off the R&D;on the whole system, and hopefully by two years from now, they will have gotten over it.
The real wild card would be if the rumors are true and Apple really is planning on bidding in the 700 MHz spectrum auction, and plan on setting up their own cell phone/ISP service. I don’t know if this would be a wise move, considering how much everybody hates their cell phone company, but it would sure shake things up!
I previewed and edited this twice; I can’t get it to stop putting semicolons instead of spaces after AT&T;and R&D;. Sorry!