But you have the option. When I heard about this yesterday, I thought it was good decisions for storage and media

Many people have external USB storage. Then again, many don't. Making people buy some just for that is uncool.

That thing is very likely to be LOADED with downloadable games and DLC, it's gonna be quite inconvenient.

I'm thinking 8GB of flash is enough for quite a few consumers. For the "core" consumer maybe it isn't, but those are also more likely to have the additional storage options.

The Wii U is about giving options to everyone, you, me and them.

I was hoping the console to play blu rays. I know that's Sony's business and this way they'll make some extra profit out of each disc (Nintendo)... but this storage media is what seems to put Nintendo in a worst competent position every generation out there since SNES.

The Wii's storage did not limit the kind of games possible on it, it uses DVD like the 360...

I'm pretty certain that 25 GB won't limit the kind of games possible on the Wii U either.

Looks more like screwing the customer.

Here is this nice new console. Oh and by the way it might be priced cheap but you have to buy all those peripherics to use it...

Since I got my PS3  5 years ago I bought one extra peripheric that cost me a whooping 49.99$ ( 1 dualshock)

How much content does your 5 year old PS3 consists of PSN games + DLC? 

25 GB disks -- good.
8 GB internal flash memory -- lame, though better than the 4GB Xbox360.

We all know that. But we also know that Wii does not play regular DVDs and that puts the console in a disadvantage.
What I was trying to point out is that they always play it their way, for good or for worse.

That's true, but Nintendo is a company which saves money when it can. Games and gaming platforms is all they make, so they have to be profitable on those things even if they're forced to cut prices early. Cutting out DVD / Blu-Ray-playing royalties is absolutely the easiest way for them to decrease their costs.

Also, unlike Sony or Microsoft, they don't get any money from Blu-Ray royalties, so it's a pure money sink for them. I guess their thinking is "if Blu-Ray really takes off, everyone will have a few Blu-Ray players at home in a few years, so what's the point?".

That's not to say Blu-Ray playing on the Wii U is impossible... it's just unlikely unless Nintendo changes strategy and wants to make their consoles also about media.