Cheap iPods as pocket drives.

Apple-Watchers Mull Reports of Low-Cost iPods

“With a $100 to $150, low-end, 2GB iPod, Apple could also become the leader in the low-end MP3 player and USB keychain markets,” he said. “Who would buy a 256MB USB keychain if, for almost the same price, they could have a 2GB iPod that plays music and stores data as well?”

Good point. I think I would finally get myself an iPod if it were down around this price anyway, and the bonus of using it for data as a pocket drive is a huge bonus.