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Rio & Napster killed the CD, and then then the iTunes store did, and then torrents did. The icon did not. <sigh>
I think the writer may be confusing "flash drives" as being the competitor of the CD with internet and network media.

Why store all of your photo's on the computer when you have Facebook and Flickr?

Why store all of your documents on the computer when you have Google Docs?

Apple is just preparing for the future as they always do. It's only a matter of time before 90% of our data is stored on a network.