Glenn Reynolds explains what is happening with digital storage capacity.

One of the big geek-news stories of last week was the release of LaCie's new 1 Terabyte external firewire hard drive. And it's easy to see why - a terabyte of storage in a package smaller than a cigar box, for about a thousand dollars is a pretty big deal.
...Twenty such one-terabyte disks, by way of comparison, would hold the entire Library of Congress, though you'd need 100 of them to hold all the pages on the Web

If you could own the entire Library of Congress for $20,000, then it's safe to say that you could own every song you'd ever want to hear for well under $1000. That's why I think that the music distribution system based on CD's is dead. It's been made completely obsolete by Moore's Law (or, if you're picky, the equivalent of Moore's Law for digital storage).