Actually, this "old" NEW news. Sony and friends made their intentions with Blu-Ray technology over 2 years ago, but actually have talked about blue laser products since the early 1990s.
jtr1962 said:
...Tape is too slow and way too expensive...
There actually is *fast* tape around. Of course, you and I would never consider buying these fast enterprise class tape drives for home use. LTO Ultrium has no problems working at a 20 MB ~ 40 MB per second sustained transfer rate with a 200 GB capacity per cartridge. But, an LTO Ultrium tape drive costs well over US$4000. The soon-to-be-released LTO II drives will have 40 MB ~ 80 MB rates.
jtr1962 said:
...and using another hard drive isn't really safe...
A high capacity FireWire or USB2 external hard drive should be easy and safe to use as a backup drive. If you need archival backup capabilities, using external hard drives would be a rather expensive. But, just for weekly safety backups, an external hard drive might even be ideal (speed, convenience, relatively economical storage).
...The biggest problems I see will be getting the costs of the drives and media down to CD-RW levels, although since the media has much larger capacity it can sell for a few dollars each and still be competitive.
The biggest problem is actually building the manufacturing line for media. There are other efforts -- namely by Toshiba and friends -- to use a different approach to delivering a blue laser disc to the masses. Their plan is to use various existing DVD disc manufacturing technologies to bring a blue laser product to market.
The other major storage technology that has yet to debut in a commercial way is fluorescent multi-layer (holographic). There are spinning disc, streaming tape, and static implementations of holographic storage, and all have their places in the market. The tape (a.k.a. -- "optical tape") has vast storage densities and the disc has high capacity and is as convenient to use as a CD. Both have very high read and writer speeds. The disc is impervious to fingerprints and surface dust. The static storage media (usually cards) can have high capacity and/or high levels of resilience. The reader's head moves across the medium as the card, sheet, or strip stays still.