There is another way to deal with storage issues on the Wii, I doubt Nintendo would go this route but I think it'd be very possible for them to do this.
Stream everything from the internet. They could allow us to backup all our save games this way as well. We'd download a "link" to the game we buy. Once we open the link on the channel menu it starts streaming the game. The system wouldn't require any external media and Nintendo would have 100% control over the content. Obviously this wouldn't work for people without internet or without reliable internet but it'd work for the vast majority of the people who buy games.
Nintendo will not up the storage space on new systems. It wouldn't make any sense. The new Sku is just a die shrink revision.
Prepare for termination! It is the only logical thing to do, for I am only loyal to Megatron.
