Think its meant to be a small form factor storage device were the device does not have room for a disk drive.
I could also see these things being used in portable music players where size and form factor are major concerns (i.e. the customer is looking for a small device with a decent capacity).
Perhaps not, but if this technology becomes inexpensive enough, it might replace plain old flash memory.
That's a given. Though it's like thinking that Blurays will get rid of DVD. I think there's going to be a parallel for a while, but who's to really say?
Okay, maybe not just a couple years. =PIs it that much for a 128G USB stick? I thought it was closer to $500.