Apple and Flash memory

Several blog postings have suggested that the flash memory based iPod Nano is the tip of the iceberg and that computers, most likely laptops, will soon ditch their hard disks for flash memory. I must confess that I'm not ready to go there just yet. Setting aside the cost, two objections come to mind:

1) In this era of rich (and storage intensive) media, how many customers will settle for only 32 or 40 GB of storage space on a full-service computer?

2) The limited number of writes possible on a flash memory module don't mesh well with the large swap files and /tmp directories that are an inescapable part of today's OS's with modern memory management.

That said, I believe advocates of the flash based laptop have merely picked the wrong iceberg. Instead of a flash based laptop, how about a flash based mobile internet appliance as the next revolutionary 'thin client'? I'm thinking of a successor to the Nokia 7700 here. Give it lots of RAM so it doesn't have to use the flash memory for every last swap out, customize the browser code to minimize access of the flash storage, and count on web 2.0 apps like GMail, Backpack and Writely to minimize the need for onboard storage. Think of a tablet PC the thickness of a clipboard designed only to browse the web. I'd buy one in a second. Would you?