jtr1962
Storage? I am Storage!
If interest remained at it's current levels and the technology proceeded at it's current pace, you would be right. While I don't share JTR's degree of optimism, I suspect most of us with tech fetishes will own an SSD by this time next year.
Knowing how everything else with chip manufacturing works, I basically just feel that at a given price point the available capacity will probably go up by a factor of four each year on account of increasing density, at least until we start to bump up against real physical limits as is now happening with magnetic drives . You can get sub-$100 SSDs by using a CF card and adaptor right now. They're just not very big or very fast.
So we're at ~$2K for 64GB now, and perhaps $500 for 32GB. That probably means next year you can get 256GB and 128GB at those price points, respectively. 128GB for $500 starts to cater to the enthusiast market, so I concur with your prediction. Still too pricey for me, though. I'll wait until that size is $99 or less. My guess is that happens by 2010.
In the meantime since the pace of things like this is often market driven, let's hope brother Steve decides to put much more storage in the next iPod™®© or iPhone™®©.