Future of storage media

My dad and I have this arguement:

I say that before long, cell phones will encompass nearly all handheld devices into one device, and use a hard drive to store everything in. (A mini hard drive, ala iPod.)

He argues that before cell phones become that advanced, flash memory will also advance to the point where hard drives just aren't needed as a storage medium. He says that flash memory will grow to several gigabytes in size, and since flash memory has no moving parts and is faster, THere will be no reason to include hard drives.

Which situation is more likely to happen?

There was an article in SciAm a couple of months back about just that, >>16 . The idea was that computers could be spread out over greater areas to help with heat dissipation and to improve reliabilty through redundancy (since having parts far away from one-another wouldn't be as big an issue, you could have more parts that do that same job).