SD/CF capacities are growing but are still nowhere near what's required for a sizeable lossless library. Microdrives are bigger but nowhere near big enough. You still need a 3.5" HDD to store that 100 GB+ worth of data.
You name the perfect example to prove that appliances are entering our homes: Network Attached Storage - NAS. They're everywhere. They won't replace the PC, but they will take over some specialized tasks.
some, one HDD isn't enough. 500 GB drives are the practical maximum now, although 750 GB drives have been released. However some want 1 TB+. You just can't fit that much storage into a small device, not even one 3.5" HDD right now.
A Terastation is still an appliance, even though it's larger than your MP3 player.
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