We should be able to cut down at least 1/2 inch off of the size of the drive. So it'll be 3 inches long max, but we'll try our best for 2.5 inches or less.
We'll add some cool functionality to the iOS and Android apps such as the ability transfer files between the Katana drive and your device. Note that iOS apps are Sandboxed, so only certain file types like pictures will be able to exist in the common file system on iOS. The Android app can be more permissive.
We'll also add advanced authentication mechanisms such as geo-fencing or the availability of certain Wi-Fi networks. You could, for instance, set up your Katana to require no password while at work or at home but have a higher level of security everywhere else.
Katana becomes your cloud enabled flash drive. You'll be able to use your Katana to upload files directly to Dropbox or Google Drive through your cellular connection just by adding those files to special cloud folders.