I think it's a nice idea, but it falls short in many ways. In a way it's a cosmetic novelty. Something new to get people to buy a product, not something with any actual 'new' inherent qualities that make it desirable. In fact, you might as well be packaging releases up as DVD's, it's not like the plastic case size is any smaller than a DVD. And you'd get 4GB to play with then.
And anyway, apart from media players with a usb port (which is becoming more common these days) this format basically says "you must have a computer", which is something CD doesn't dictate. Compact Stick is for the 'computer-gen', but not everyone uses Ableton or Serato.
It would be much neater if the case was smaller, just a small plastic case, or maybe something the size of a small dvd or cd disc, like one of those camcorder discs. But I guess they are coming in from the artwork angle.
But to me this is still telling of the way almost the entire planet is still stuck in the idea of needing a 'package' to have artwork. Even the photos I looked at on a Vibrasphere compactstick were at some crumby low resolution. When will we embrace the screen as the artwork format that it really is? It's about making a shift from files to code. thinner.cc really are leading in this regard (although they still stick with the cd case size thing).
