Microsoft, SanDisk to Develop Advanced Memory Cards

According to this article, Microsoft and SanDisk are working to develop advanced memory cards “that allow consumers to easily take their data with them in one small device.” SanDisk will be developing the actual hardware, which is supposed to be about the size of a pack of chewing gum and can be plugged into a port on multiple computers. Microsoft will develop the software. The cards will be available in the second half of 2008.

Now, maybe I’m being a nay-sayer here, but doesn’t this sound pretty much like the current memory “stick/card/whatever” devices on the market now? I can take a USB based memory stick and plug it into a USB port (available on almost any computer you walk up to now), copy files to it, walk over to another computer and plug it in and access those same files. The only limitation right now is storage size and even that is increasing.

Why do we need a new storage technology? Why not spend the same money on increasing the storage capacity of the existing USB based devices?