Those 1gb flash sticks are only like $20 now and it seems like that price just dropped overnight.
Kingston DataTraveler 4GB Flash Drive (USB2.0 Portable) Model DTI/4GB - Retail (http://www.newegg.com/Product/Product.aspx?Item=N82E16820134484)
$16.99
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Flash is cheap right now because demand fell in some crucial markets right after the major manufacturers increased their production capacity. Demand went down and supply went up.
Hard drives aren't especially cheap right now. Sixteen months ago I bought two 320GB HDDs for $110 each, and one month ago I bought a 500GB HDD for $130.
And that new breakthrough by Sony is neither a new breakthrough nor by Sony. (http://arstechnica.com/news.ars/post/20070703-researchers-demonstrate-laser-based-hard-drive-technology.html)