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RE: "How does lithography impact storage,...I maybe am missing simethib here."

Well since one will be able to make even smaller transistors, then now possible, this will lead to new levels of sub micron chip design. Photo lithography is among the early steps taken to draw the various levels of transistors and the interconnecting wiring on into the chemical coatings applied on the silicon substrate (wafer) in the case of making transistors.
Where then during after each "writing step" is taken, one performs the chemical processes to implant the silicon substrate with either p or n or other metals, to build up parts of the transistor, as well as the aluminum interconnect leads (wiring the logic blocks) per circuit design requirements.
During the many stages (steps), think many passes of first creating a image upon a photo resistive coating allowing the coating to change it's characteristics, say not be susceptible to dissolving away when a given type of acid is applied to the wafer surface. So one builds layers into the wafer substrate surface, So with this new reduction in the beam size, one can make smaller features. Smaller transitors equate to increased clock rates in Integrated Circuits, as well as increased size of RAM and ROM.
So companies will be able to manufacture more powerful transistor circuits. For example:
Say current fabrication techniques limit the total size one can build a RAM onto a CPU chip, to 10 megabyte.
Now one may be able to double the size of the RAM on the chip to be 20 megabytes. Henceforth, a 100 percent increase in "storage" capability on the chip.

I barely touch upon how one makes a integrated circuit. Just think smaller elements such as transistors being made on a given dice size of silicon, so that more logic and memory can be designed into the integrated circuit. And smaller size transistors mean increased clock rates, so the chips can run at greater speeds for a given heat generation.
It gets rather involved.

I hope my deliberate abbreviated explanation helps some sort of visualize the benefits of increased ability in Photo Lithography to create ever more complex IC's.