Hitachi announced a breakthrough of sorts and expects to have 1 terabyte 3.5" hard drives on the market within 2 years, as well as 20 gigabye 1" "Microdrives".
Mark Federman alludes to, without going into details mind you, the disruptions this kind of data storage capacity increase can cause. He also points to the rather painful Flash animation Hitachi had made to, um, explain the tech. ;)