Would it be less expensive to just buy a couple more 256 MB cards?

Yes, it probably would, but that's not the obstacle here. I'm not too concerned with the price, I just want a device like this. Like I said, I wouldn't want an iPod because I don't want to only listen to music. This device plays and records audio and video. Having portable digital video with me is a dream come true. Add to that the ability to store digital photos, and a file taxi (a nice 15MB/s transfer rate on a 20GB drive is nice for the video projects my friend and I would transfer between our computers), and it's the kind of device I'd love to have.

Plus, I can see the two of us taking some time each night to look at the pictures we took that day. That would be really nice.