Stephen Shapiro brings up an interesting point when he mentions how 'the crappy and cheap will eventually take over the sophisticated and expensive,' which is an ideal from Clayton Christensen's book The Innovator's Dilemma. Later on in the post Stephen also gives us an example of this idea in the computing world. Before the age of the PC, the mini-computer and mainframe that cost tens of thousands of dollars were heavy in production. Now there are talks of how the new $300 netbooks might eventually replace the PC which can be bought today for under $1,000.
The current economy has created this problem where many companies are looking away from innovation and building cheaper developments instead of building faster and more sophisticated technologies. I'm interested to see what companies out there are still looking to innovate through these troubling times.