Uhm, no. It's got very little to do with demand. Flash Memory is expensive. Always has been, and MAY always be. Flash has been "replacing" magnetic disk technology for ten years now, and has never reached a price-point where it is a practical replacement. Flash Memory is sexy, but spinning disks really do get the job done. People predicted no market for microdrives, but the microdrive has even infiltrated the one market where flash was always perceived as superior--mobile devices, particularly MP3. The truth is, flash, in its way, is just as complex (wafer/IC stacking schemes, parallel/serial addressing schemes, packaging, etc.) as the spinning disk. And the spinning disk, frankly has already been invented. The only thing Hitachi has to do is shrink the parts, and they've already demonstrated that. Microdrives will be here to stay until Flash begins to achieve a price-point where it can actually start to push into the laptop/desktop market in some capacity other than for super-expensive mil-spec machines.