The author of this article is missing the main reason why fixed hard-disk, compressed-audio players are the present, and the future: Information (Audio) Management!
By separating the physical storage from the information, MP3 players allow music to be transferred, backed-up, and cataloged, and leveraged by modern information management methods. Specifically:
File-sharing: obviously old news, but important.
Cataloging: I have 30 GB of MP3s, on both my computer and my HD-upgraded Archos. All of that is indexed in many different ways, using playlists, and Genre filters. I'm happy not to have shuffle around lots of MD disks. I also have hundreds of band-practice recordings of my own bands recorded on the Archos.
Modern "Jukeboxes" such as iTunes enable entirely new services, such as http://beethere.net/ and http://www.last.fm/. As a major music listener and musician, these types of services are what I always dreamed of. For those not familiar with these:
BeeThere.net: Shows you the concerts in your area by all of the artists in your iTunes.
Last.fm: Makes a custom radio station using the music you listen to in your library as a seed for making recommendations. It is similar to Pandora, but uses collaboritive filtering to determine relatedness of songs. (and a bunch of social networking stuff)
There is really no comparison between MD and MP3 based audio management, they are in completely different leages.
By separating the physical storage from the information, MP3 players allow music to be transferred, backed-up, and cataloged, and leveraged by modern information management methods. Specifically:
There is really no comparison between MD and MP3 based audio management, they are in completely different leages.