It looks like a thumb drive at first glance, but AirStash is actually a pocket-sized media server that can wirelessy expand the memory of your iPhone or iPod touch.
Apparently, the files are stored on an SD card that you insert into the device—giving you the ability to expand capacity when needed. I assume AirStash will be compatible with more devices that the iPhone and iPod touch, but we won't know the exact details until it is officially unveiled at CES. Personally, I wouldn't be all that thrilled about having to keep track of another device because I went with an 8GB iPhone, but I am all for technologies that reduce the need for a set amount of internal storage. [AirStash via Engadget]