Wrongo. They have 8 GB MicroSD cards now. And they keep upping the memory. Chances are that before iPhone 2.0 comes out a 16GB or even a 32GB MicroSD card will come out.Oh and by the way cobalt24, why on earth would you want a SD slot? Do they even make mini or micro SD cards bigger than 1GB? the iPhone has 8GB already! more than any card in the near future!
And why do we assume they'll choose SD? Why not Memory Stick or Compact Flash? Samsung recently announced a 64GB SSD.
Now there isn't a reason for the iPhone 2.0 to have any less than 60GB, WITHOUT a hard drive!
I don't think the iPhone will EVER have removable memory. It gives too much control to the consumer and that is absolutely never been Apple's modus operandi.