The primary issue in this is shrinking the platters. A 2.5" drive can really have no more than 2 platters, otherwise it becomes too thick to be of much use in current laptops. That being said, to get to 200GB, you have to be able to produce small platters of 100GB. Now, as far as I've been made aware, 100GB platters are currently the norm with 3.5" hard drives, where they can fit 4 platters in a drive. As of yet, I've not seen a 3.5" drive with more than 400GB. External hard drives are not limited so much in terms of space, and as such, you see products like Lacie's external drives exceeding 1TB, because they can stuff quite a number of platters into the enclosure. Laptop drives will be doomed to increase very gradually, while desktop drives will jump considerably. You'll likely see a laptop drive break 120GB within the year.
As for the speed, it is unlikely that the industry as a whole will adopt the use of 7200RPM drives within laptops. The primary reason for this is the heat it generates. While a hefty laptop like most Toshibas can handle this fine, smaller machine such as those made by Sony and Apple will have a much more difficult time of it. Consider that on a 12" PowerBook, the hottest part is the metal to the left of the trackpad, which is directly above the hard drive, and it uses only a 4200RPM drive. 5400RPM should be the standard by now, as should 512MB of ram in a laptop. Apple has been criticized for not making such shifts, but the majority of the industry has yet to make such shifts, so it seems premature to criticize. Also consider that the standard for desktops is still 7200RPM, despite the availability of speeds up to 15,000RPM.