They are slowly loosing ground.
I have my 300gb VR and Im happy with it. I have 160Gb of stuff installed (Many many games, applications etc) But I have files etc stored on my WHS. 64Gb would be nowhere near enough for me. The seek times and access rates are still half that of a standard 7200rpm drive, so they are still quicker at response times. However, they do need to be cheaper to sell.