So in the storage business everything used to be done on the highest performance, most reliable drives. Typically those were 15K RPM Fibre Channel drives which cost 8x the price of an equivalent SATA drive [1]. In 2003 NetApp created the 'NearStore' line which was filers that used SATA drives. The idea was that tape was way to slow, you could put stuff on SATA drives and for low duty cycles get to it a lot faster, SATA drives were 'nearline' storage which was defined to be "about 99.8% available." This was hugely better than tape but not as good as a "real" disk array. Of course what people discovered was that you could have some pretty huge data sets be reasonably accessible that way, the first folks were the oil and gas folks [2] but lots of people jumped onto the bandwagon, it was cheaper than a storage array, faster than tape.
Now lets look at flash. Most people think of flash as a disk replacement because it connects to the computer through a disk interface (even though it doesn't have disk mechanicals). So it seems like a really fast disk. My assertion though is that it isn't a fast disk, its slow memory. It is 'near line' memory. Which is to say it takes a lot longer to access something in flash than it does in memory, but its craploads faster than getting off of spinning rust.
Four years ago, I told a guy who claimed to be Intel's key flash architect that if Intel would put flash on the same side of the MMU as the processor we would completely change the way servers are built. Why? Can you imagine that you've got 200GB of address space that is already ready to go when you turn on the processor? Once you start loading page tables you read in the ones in non-volatile flash and blam all your data structures are ready to go, right now. You want to make some sort of logical computation based on the state of a 50GB data structure, and all you do is follow the pointers? The 'driver' for flash attached as memory is
var = *((var type *)(0xsome64bitaddress);
But we cannot do that because flash doesn't live on the front side bus, it lives, at best, in the PCI Express address space on the other side of the Southbridge. [3].Bottom line Solid State drives are doomed, you can't make them much denser the physics doesn't work, you don't want to waste your time going through the disk driver and I/O subsystem to get to what is essentially more memory. But as flash moves closer to the CPU its impact will become pretty impressive.
[1] This lead people like IBM to propose 'bricks' which were 8 SATA drives in a RAID or Mirrored config pretending to be a single reliable drive.
[2] One of my favorite Dave Hitz quotes: "Oil and Gas companies have an awesome compression algorithm, they can take a 600TB data set and compress it to one bit, 'oil' or 'no oil.'"
[3] Yes the new Sandy Bridge DDIO architecture helps with this. (http://www.realworldtech.com/sandy-bridge-ep/2/)