You should all take a deep breath and read "The Machine Stops" a short story by E. M. Forster. It provides an interesting insight into a world where someone else (them) control all of the conveniences of life (update would be "control our data"), and when the "machine" breaks...
I like all of my data in the "cloud" where I can get to it anywhere, but some stuff, like my personal docs and media, I want close at hand where I can control it. The cloud and my personal copies on physical media back each other up.
So, no physical media won't die for those of us who actually think about failure modes.
Eddie O
True. But at some point, online storage will get cheaper at a faster rate than personal physical storage gets cheaper. People will like the convenience and opt for the online model when pricing is similar.
Hell, I don't even like IMAP because if you delete an e-mail there (from the web interface), it's pretty much gone for good. Too bad the iPhone wasn't made to handle POP3... never in sync with Mail on your computer. I wish iTunes would sync e-mail messages and apply the rules and junk filter on the iPhone so you don't get notified for junk mail when on the go. A clock syncing wouldn't hurt either, iTunes could set the iPhone time to the computer time (which is synced from the internet). My iPhone is off by a minute every month.