Primer on Music Servers?

I've been watching as the price of digital storage falls like a rock. You can now get a 4GB compact flash card for $45. A 16GB compact flash card sells for $235. I clicked around and saw that Samsung is planning 64GB CF cards in the near future, which means that those 16GB cards will be 50 bucks before too long.

However you code it, that's a lot of music. I have a friend who ran his own software company, and a short while back he told me that people will soon be carrying the contents of their PC (operating system, apps and data) on compact flash cards, and soon after that on their credit cards.

I've got to think that we're at the dawn of an era where digital content is stored and retrieved without moving parts, and where storage is so vast that capacity is no longer an issue. All of this leads me to believe that the various spinning media are living on borrowed time, be they conventional hard drives or CD, SACD and DVD.

I've discussed this with my A/V system dealer and he points out that the music servers come from the PC makers. Those guys just don't get it when it comes to the various interconnection and other performance issues that audiophiles care about, he says.

Having interacted with my share of geeks I absolutely believe thus. Still, how hard is this? I'd think it's a matter of how to stream the data from storage. If the PC makers don't get it, what's keeping the audio equipment guys like, say, Linn, from going there? It must be that there are much more formidble technical challenges than I know.

Perhaps folks here can lay them out? I'm not particularly interested in various format wars (coding methods) unless there's something about a particular one of them that makes it especially difficult to move digital content off of a CD or DVD. What's the holdup to music servers that would equal the sound from the best spinning disc players?

I'm hoping I don't set off a religious war with my question. I don't own a music server right now, and I'm not going to get one until my dealer tells me they're ready. I'm just wondering what the holdup is.