> I had an MP3 player on either side of 2000 that was slightly smaller than a deck of playing cards that could use Smart Media flash memory cards. The largest card at the time was either 16 or 32mb and was enough to hold 1 album at near CD quality.

I had something similar. The storage was the iPod's killer feature, along with iTune's $0.99 songs. Suddenly you no longer had to buy whole albums, and you didn't have to swap out what was on your MP3 player every day when you wanted a different playlist. A 5GB hard drive in your pocket was a huge innovation then.

"1000 songs in your pocket" was the entire driving force behind the thing. It was constantly bellowed in the marketing and it's what Steve Jobs demanded of the engineering team from day one. The size and the storage were paramount and they knew no one else could match it.