To be honest, I highly doubt this rumor or that a USB HDD is on the way at all. The most logical storage solution would be SDHC. The Wii already has a SD card slot and is only a firmware update away from allowing SDHC cards which have a maximum capacity of 2 TB's and faster transfer rates over SD.
Current SDHC cards max out at 32 GB ($80) though there are lots of 16 GB cards for $27 and the prices are dropping as larger capacities are released. 8 GB is just $14.
The rEVOLution is not being televised







