At 1X speed, a DVD's data rate is about 11Mbit/s - so at 250,000 times the density, isn't it safe to assume a theoretical data rate of 2.75Tbit/s? Of course, pushing that much data at that rate is another problem...
If my assumptions are incorrect, please let me know - I'm just trying to understand.
The total amount of data the laser goes over in a second is proportional to n - because it's related to how long the laser takes to get from one edge of the square the the other edge. But the total amount of information stored goes up as n^2 - it's related to the area of the square.
Or: to put it another way, the number of tracks also goes up when data density increases.
(This also happens with hard drives over time. Recent hard drives take a lot longer to read or write the entire drive than older ones. See http://tylermuth.wordpress.com/2011/11/02/a-little-hard-driv... for example.)
The "1000 TB" is just PopSci extrapolation at this point. If it does happen, it'll be neither a CD nor DVD.