iSCSI Specification Approved
nasorsan writes "The iSCSI protocol is a means to transport SCSI commands and data using TCP/IP packets. This ratification by the IETF is "the last major hurdle for iSCSI to become widely supported. . . 'Now that it's done, Microsoft Corp. and Novell Inc. will release drivers, and the games will begin,' says Steve Duplessie, senior analyst at Enterprise Storage Group Inc. 'Anyone who doesn't think this is the beginning of a huge market is insane.'" he added."
I doubt that's going to be the case for the very long term. iSCSI is going to be in the LAN space sooner or later. The protocol does give at least some thought to security, and you can run it over IPSec.
There are plenty of insecure protocols run on local LANs today that can be nearly as bad. I know that it's a bad idea to trust your LAN but nevertheless people do it all the time, especially in physically secure environments like machine rooms.