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Mr Khan said:

Waaaay too big, even if it is cheaper, SDHC would be even cheaper, and lead to similar results of space

 

IF the hardware also supports SDHC.

Otherwise you can update the software but the hardware still won't recognize it and more commonly used SD card readers used in 2005-2006 did not support SDHC and be much more costly,PS3 used SDHC but Wii doesn't.

DSi does since now SDHC is now the standard card reader.

 

May explain why the rumour is talking about a USB HDD instead of a firmware update.