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?

Mr. Fusion> sounds like something us americans would think of. not a bad idea, but for personal computers that'd be a hassle. i mean, a server rack is huge as it is... something as large as the ENIAC that does the same would be silly. and probobly really cheap to make.... yaknow what? i think you have a convert.