Flash Memory to Rival Hard Drives
Skal Tura writes "Samsung will start producing 16 gigabit Nand Flash chips this year, nudging the memory technology towards use in notebook PCs and maybe even edging out hard drives in some products in the next few years."
There are linux distros that happily run on flash. Damn Small Linux comes first to mind. It's possible, in fact many people have done it, to build a computer with no hard drive; just flash.
The current problem is that you get only a limited number of writes to flash. TFA doesn't mention that. It is a problem but not an insurmountable one.