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Option 1 would be possible, but is a hack and not save much, maybe $50 off the cost of an entire new box, well maybe $100+ off the cost of Wii compatible mode. I could see it if they made a new box not backwards compatible, and this box.

USB just isn't fast enough for option 2 and have decent performance for games. It would introduce too much latency and saturate the USB.

Anyways, I say the likely hood of your two options combined is