Is this flash ipod touch just round one, or will apple come out later with a hard drive version?

I remember when the first Nanos came out, the top size was 4GB. The 5G ipod came out just shortly after in 60GB model. i.e. 15x as big.

Now we have 8GB Nanos and 160GB ipods. i.e. 20x as big.

It doesn't seem especially like flash is catching hard drives.

And given that people have been living with 40GB+ ipods for at least 3 years now, and that size of flash seems at least a year away, it doesn't seem like flash can imminently satisfy the ipod buying public. Or can it? Does Apple only care about the bulk of consumers who fit in the middle of the bell curve?