Well it sure has advanced in capability though I'm not so sure about price, I did spend a whole 2-3 months' salary on it :P
Miniaturization has been incredible though. An 80GB MP3 player from 10 years ago:
http://img52.imageshack.us/img52/50/p1010855w.jpg
And a 128GB one today:
http://2.imimg.com/data2/KC/SM/MY-25...le-250x250.jpg
I think the 2000's were probably the heyday of hard drive technology though, since about 2010 or so we've seen far less progress
