Caught this article in the news this morning. The nanoscale milling involves a tip similar to the ones used for atomic force microscopy, and they say it's cost effective and a serious production method.
http://www.upi.com/Science_News/2010/04/22/IBM-announces-nanotech-breakthrough/UPI-37091271959200/
I reckon nanoscale is not only the next wave of miniaturization, it really is the last wave. Nothing is going to be built on a finer scale than that.
Just wondering about the implications of reaching that limit: could we finally reach the point where it is worth having machines that are built to last instead of so quickly becoming obsolete and replaced with "the new standard"?
I didn't find a link to the article in Advanced Materials, but maybe somewhere here amongst the new stuff ahead of print.