There's absolutely NO way that they will include 20GB HDDs on the Arcades as a permanent solution.
HDDs are too cost-prohibitive to ever be available on a base model. HDDs in any solid form are $30+ at wholesale. Whereas memory cards, flash drives and various iterations are far cheaper.
If anything, MS will figure out a cheaper $10-15 solution rather than HDDs. Even if it means neutering the Arcade for Netflix. Netflix is a service designed for Premium and Elite owners...Not Arcade owners.
And ultimately, Microsoft, offering "upgrade" features - such as the $100 pack for the 60GB HDD + Live + Headset is the way to go, since MS makes a tidy profit as opposed to subsidizing the costs of a 20GB HDD on Arcades.
The BEST you could hope for is what MS is doing right now - offering cheap refurbished 20 GB HDDs for a limited time. Because those cost Microsoft very little. But offering new 20GB HDDs in Arcades for $200, when a 60GB HDD costs about $5 more would be retarded.
Back from the dead, I'm afraid.
