You can get a 4GB (soon to be 5, maybe 6 GB) iPod mini for $250. Rumors say a sub $200 flash player is coming soon.
I think Apple won't ever break the $150 barrier with anything they sell. They do a good job of staying out of low profit margin commodities. (Airport Express - a wireless basestation that hooks into your stereo, may be the sole exception, at $129.)
20 gig notebook hard drives ae getting real cheap.