Floods or not, the current price isn't $120 dollars. It's 50% higher than that.
http://camelcamelcamel.com/Western-Digital-Caviar-Green-Desk...
Shows one of the cheapest 3tb non enterprise drives. It looks like 3tb was $120 for ~2 weeks. Looking at enterprise drives, 3tb is closer to $300.
This article is basically advocating RAID 5 across many storage providers.
*edit: From the pictures, article is advocating RAID 10. Nonetheless, RAID5 would be just as feasible for additional storage.