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it's only a matter of time, the signs have been in the news lately.
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It would make a lot more sense with a an 'always-on' internet connected device, such as an iPhone or a not-yet-released internet tablet. They could cut storage quite a bit to lower the cost but maintain the margins because you're goes with you wherever you have a connection.
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No one's mentioned, and I think, it's just another pawn in the growing Apple vs. Google chess game.
The article mentions that Google implemented the Lala buy option into their search results recently, that's where I was first exposed to the service.
~A