Removable storage isn't the only thing on the SD Card Association's mind these days. They have just announced the Embedded SD standard, which will be their attempt at moving into the embedded storage market.
This new standard will use what has worked in SD in the past, so the transfer to the embedded form should be a snap, at least according to the SD Card Association. This should also make platform design easier for cell phones and other CE devices simpler.
The new SD standard supports 3.3V and 1.8V. There is also a flexible partition mechanism that makes it so it can support different data types at once. Data protection and power saving are also features. We don't know what devices will carry this yet, but 32GB appears to be the max at the moment.