Watching the evolution of storage over the past few decades, it's becoming obvious that IT has overcome tremendous challenges in terms of storage technology, all the while building new problems that will need to be dealt with over the next decade. It's a tremendous advance to go from circa-1998 DEC Alpha-driven Network Appliance filers that took three racks of 9GB SCSI drives to reach a terabyte all the way up to a single 1.5TB SATA drive, but it's also a tremendous problem to back up, catalog, and secure the simply enormous amounts of storage present on just about every network. Tape has always seemed archaic, and even with the newer high-capacity Ultrium drives, there's still plenty of problems with backing up to tape, not the least of which is cost. It's generally cheaper to buy two identical storage solutions and replicate them than it is to continually buy and store tapes over time. That said, it's definitely not easier to locate those storage solutions in different physical locations without expensive pipes connecting them.
The other problem is that when you give essentially unlimited storage to a set of users, they will always use it. The saying "A project will tend to expand to consume all available resources" is getting out of hand now, and I'm guilty of that as well, looking at my 500GB home directory.
It used to be that resources were so tight that Unix commands were truncated to save resources (cp, rm, ls, and so forth), and code had to be as concise and elegant as possible for the same reason. That's not nearly as much the case anymore, as evidenced by the 16GB base installation of Microsoft Vista and Office Premium. But even that's not as serious an issue as dealing with per-user storage bloat. When every user had a limit of, say, 25MB on a central file server, locating small but important files was easier. Now, wading through a few hundred gigs of storage to find a very important 100K Word document is a chore, and nonindexed file searches take far longer than ever.
At the same time, the new capabilities offered with products like the Sun 7000-series storage appliances are paving the way for new takes on old ideas, such as video-on-demand. Let's just say that a 48TB 7210 can store quite a few HD movies, and there's no such thing as an overabundance of scratch space when working with audio and video projects.
So, in the immortal words of Kent Brockman, I, for one, welcome our new storage overlords.