Count me among the growing number that is buying this MP3 player for $200 and extracting the 4gigabyte Compact Flash Microdrive within.
The Microdrive is an incredibly small hard drive, about the size of a book of matches, invented a few years ago by IBM. Trying to buy just it alone would cost $499, so this is actually the cheapest way to get a nice small storage device for my Canon 10D digital camera.
Wired has an article on the phenomenon.