I agree on your first point, but not as much on the second.

The microdrive is still spinning at 3600rpm, is sensitive to pressure on the center of the card, and relies completely on air pressure to float the head above the platter surface.

So: if you drop it, squeeze it too much, or are at higher altitude (>10000 feet), you can have issues.

It also draws more power and has been left behind from a performance perpective with the new "32x/40x/Ultra" flash cards.

I still think they are a great bargain in the >2gb form. <2gb, I'd stick with flash.