First of all, Chehansen, I never said I didn't believe him. Second, DarkNight, that bickering over every single one of my posts, and even replies to my posts, without adding nothing to the discussion, is starting to sound really sad. If you want to prove your point, do it by provinding info, not with posts like your reply to DonWii.
Now, onto the technical matters. I already knew the Wii used elliptic curve cryptography. That, however, says nothing of the performance issues with software encription in general. Actually, if all the Wii used to encript data was elliptic curve cryptography it'd be quite slow, because like most public-key systems it's not very fast (it's orders of magnitude slower than something like AES). But, in all likelihood a symmetric system is being used anyway, and a stream cypher if random access is needed, so that's not the issue.
The issue is you've now made several strong claims (and adding new, unrelated ones on every post) without properly supporting them. You've specifically mentioned an article which indicated an "half second delay" to "handle encryption". You have a link for that one? Because, it's not the one you posted (which is a forum post, for starters).
Then, side stepping the Xbox stuff, there's the claim about Nintendo encrypting "everything". What's this "everything" we're talking about? The shop channel for instance, doesn't encrypt almost anything (a tcpdump of the connection is proof enough). So, are we talking about the games internet connections? Any source for that one? Please include support for the latent claim that elliptic curve criptography is used to encrypt real-time game connections.
You also said everything is encrypted, even in the internal memory. Where did you pick that one up? I'm not saying otherwise, I think it's plausible either way, but you seem pretty sure of yourself, so... any source?
And as to SDHC, I find it pretty amusing that, as an answer to my question about it, you fault me with not having read the press release you linked. Well, I did, and there is no mention in it to SDHC. Now you made the added claim that only a firmware upgrade would be needed. Well, I already suspected as much, and you still provided me no source, which was what I asked for. You could have linked Wikipedia, for instance, but I found that one myself meanwhile.
Finally, I'm not saying external storage isn't coming, so you can stop calling me silly. I'm not saying that, because for one, it's already there. SD cards are pretty external, and already usable. I'm also not saying SD support won't be improved, nor that USB mass storage won't be supported. I'm simply saying I'm not yet convinced that any of those improvments are confirmed, and that your screens and that press release prove none of that. You, yourself, recognized that the SD card in the picture can very well be a 1 or 2 GiB card, so that doesn't prove SDHC support at all. A blurred image does not prove HD support either, as it may very well be an edit feature, or something else entirely. How full a developer has his Wii... well that's laughable proof of anything, sorry. And finally, future games... well, some once said the Wii-mote had to have a microphone, given Boogie had been annouced as having karaoky; that and you'd be shouting it "wingardium leviosa" on another game, with screens and everything.
Actually, I do expect (and hope for) improved SD card support, including SDHC support. I'm not so sure about USB mass storage, as USB host drivers may have simply been added for the keyboard support alone. But even if some form of USB storage was to be supported, I think a proprietary solution is far more likely (though I obviously hope not). Anyway, none of this really means the handling of VC games and Wii Channels is bound to change. I personally do hope it does, you know, but I'm not conviced it will and find it somewhat unlikely. And the ability to save pictures to the SD card, plus a FAT and a USB driver announcement, certainly do nothing to convince me any more. Sorry.
