They invented flash memory, so it's only fitting that Toshiba has now produced another world first for NAND memory: the first with 128GB of capacity. Just think what media you could store on your phone with that module.
To be perfectly honest, I'm getting less and less interested in high capacity local storage. I've been using Rhapsody for my music (and with the coming of music streaming from my desktop in future versions of Android, I may not even need that much anymore). And with the advent of more video streaming like NetFlix (coming), TV.com(here now), or YouTube (here forever) apps, I'm less interested in local video as well. The only thing I'd be interested in having storage for was my own stuff. Perhaps shooting a video on my phone or something.
But honestly, and I know I'm breaking tech-geek rule number 1 here, but I don't really think I'd need that much storage. I may be in the minority, and that's fine. But I'm honestly much more excited about the possibility of unlimited streaming than I am about getting a higher limit on my local media.
Of course, I'm also using an Evo with unlimited data. I suppose if I had a limited data plan, I'd be much more interested in keeping my files local.