I imagine those little USB keys we carry around will eventually store hundreds of gigs of data, all on flash memory chips. No magneto-optical storage necessary.
Already done. There is (almost was) a company, www.go-l.com, that put a suped up custom version of XP on a massive Flash drive- instant boot (something like less than 2 seconds, I believe)
Ever heard of optical memory, or the new memory Phillips is working on.
AKA 'Memory Cube'
My guess is the coming few years will yeald the long-awaited cube memory where a block the size of a sugar cube will be able to hold GB (eventually TB) of info at current USB drive prices. My guess is they will soon replace USB memory with optical, or Phillips' electrical.