I think any 'consolidation' wont happen till after the insurance issues are settled...and that probablhy wont be for a while.
On the one hand it makes great sense for the industry to consolidate. On the other hand, which of the other two players is gonna fork over big cash and add a lot of debt to get capacity, which they dont need. Do the other two players really want a foothold on US soil? I dont know.
As for the big drive guys, WDC could make a play for HTCH. But there getting the suspension systems so cheaply right now due to the competition amongs HTCH and competitors, that it may make more sense for WDC to just let these guys continue to fight it out.