1 - So I guess the millions of people buying 64GB iPod Touches and 160GB iPod classics will suddenly decide they're happy with a quarter of the storage space on their new device? Interesting...
2 - Try "impossible" - The phone won't fit 2 chips. But wait....it's almost like there used to be only 4GB iPhones....then (magically?) storage on a single chip was increased so they could have higher capacity phones. You're probably right though, there will never be a consumer grade chip higher than 32GB. Technology just doesn't advance in that way.
3 - Ok, so let me get this straight. I have a CD player. It's the ****, I can listen to like 20 tracks without having to change the disc! Over the years, however, I've accumulated so much music that I want to bring it everywhere with me!! Unfortunately, there's not a device that exists that could store thousands of CDs at one time, so instead, I'll just bring along all my CDs with me, and if I get tired of listening to my current one I can stop my music, dig through my bag to find the one song I want to listen to, change out the CD, find the song, and then go!!! The only drawback is that I actually have a finite amount of times I can do this a month, I'm on this "200" a month max, and every time I switch out a CD it takes away from that amount. By my figuring I'll be able to switch out about 30 times before I go over that a month, or one switchout a day. Additionally, if I'm on a plane, tunnel, out in the woods, really anywhere my CD player can't make a connection, I can't swap music. Bizarre. Sound familiar? Because that's what you're looking at with the cloud.