In order:

Not much

It's still using HDDs/SDs, not memory cards

Not sure, but likely proprietary DVDs

No

Yup. It was the only way to play Xenoblade for a long while. Once I started, I just took the extra step of being able to play my ripped movies on it too. Then I installed all my games, for laziness' sake. Still have to bust out the game discs once and again though, since some installs didn't go through perfectly.

Some of you are crazy.

This is a perfect solution and THE best option for consumers.

MOST people won't need more than 8GB and already have quite a few SD cards laying around or would be happy with buying an $10 16GB SD card to pop in there.

Those that will want more storage are by far in the minority and will have no issues spending $50 or a large usb HDD (up to 1TB probably for that price).

This way Nintendo can keep costs low, increase the lifespan of the WiiU, reduce its size, reduce it heat/noise levels, etc etc.

I am really happy with this solution. Especially if WiiU has connectivity to my PC like my PS3 does.... then it really doesn't matter as all my large media content will simply be streamed from the PC to the WiiU. Videos take up the most space anyways.

Which is exactly why those who actually need/want extra space can simply go out and buy whatever fits their needs.

Not everyone likes that solution because standars and HD and all that. But I'm with you as I don't know if I'll need a HDD ever.

Expected but still crappy. A larger standard size would make third parties more comfortable in releasing digital content, especially ones releasing download only games.

I wonder what the attach rate for external HDDs will be, especially if first party games don't require you to purchase additional storage. Time will tell.

Pitiful...

I'd rather not buy a $300 console then immediately have to drop $50 - $100 on a hard drive that should already be included.

You spent $400 on the 360 at launch and/or $600 for the PS3. But a new console for $300 with the not mandatory $50 HDD that may be 4x larger than what they'd include with the maching is somehow a bad deal?

Indeed, I also have 8GB for Vita and it just isn't enough, only demos and its already full. I need 32GB for my VITA

Yes, it's all about percieved value. If I feel like I'm paying full price for something unfinished, I'm left with a sour taste.

Similar to how I have hard time talking myself into buying a Vita, not because it's $250, but because I'm going to have to drop at least another $50 on a memory card.