I think that brands we know of will get into the l.e.d. flashlight market more. By brands we know of, I mean Energizer, Rayovac, Coleman, Dewalt, Leatherman, etc. Energizer is coming out with decent headlights and has flashlights with infinitely variable brightness and updated l.e.d.s. Rayovac has a 300 lumen l.e.d. lantern for $30. Coleman has 500+ lumen l.e.d. lanterns and spotlights and ultralight l.e.d. headlights. Dewalt is using Cree XR-Es in their lights. Leatherman is rebranding Fenix lights. These are companies that nonflashaholics know of, and with decent quality products at reasonable prices, in brick and mortar stores, so I think they'll gain market share in the near future.
My only concern is that once the masses get a hold of these cheap, bright lights, that one dumb person will start shining their light in people's eyes and cause laws to be made to limit the brightness of flashlights sold. It only takes one person doing something stupid to ruin it for the rest of us.