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Your iPod stores thousands of MP3s. And if you have a newer model, you might have photos and videos on there, too. And all of the information is stored on a portable hard drive (unless you are using a Flash-based iPod Shuffle).
So with 30 million iPods sold in 2005 alone, what do you think would happen if iPods were able to store any information dragged and dropped over from a PC or Laptop? You can bet that Steve Jobs and company have been thinking along those lines. The more useful they can make the iPOd, the more its going to burrow itself even further into the American lifestyle, becoming the top portable hard drive for digital storage of anything (like entire films, or books, or your personal medical data, or just about anything).
Bottom line: The iPod is so ubiquitous and has so many possibilities that it could end up being the premier portable, hard-drive based storage unit of the 21st century.