MacWorld UK reports that iPod mini drives are cannibalized for cameras, since 4GB PC-card drives alone cost twice as much as the iPod mini itself. The article hopefully warns punters that such drives may not work outside the iPod since they are specifically built for it and not for use as a removable storage media. I've seen numerous stories that corroborate this and, so far, none of a successful reuse of an iPod drive in a camera.
Side reading: Slashdot points to an article by Richard Menta on how Apple rescued the Microdrive technology after IBM sold it to Hitachi. I'm not sure the Microdrive would have sunk without Apple but the iPod will surely boost its sales! One can expect to see 4GB drives becoming standard gear on the digital cameras mid/high-end market soon.