http://www.eet.com/story/industry/semiconductor_news/OEG19991018S0042

Upshot: motarola planning to ship $1 flash-based part soon, AND:

    "All of our new designs will be flash-based instead of OTP
    because we can offer this memory storage at about the same
    price as the one-time programmable solutions," said Kilbane.

I don't see how microchip can compete against that sort of thing unless
they get a lot more agressive with new parts, lower prices, and better
availability.  (Motarola isn't alone, of course.  Atmel and Scenix are
also essentially flash-only suppliers.)

BillW