> I don't see why anyone would possibly want a low-capacity MP3 player.

It's an invented market that relies on MP3 piracy - why do you think most of the solid-state players are marketed as "Internet Music Players"? :-)

I don't think it'll take much longer before people work out that a minidisc player is much better value than a solid-state MP3 walkman, and then technology will progress.

Rob