They'll be using SDHC, the slot is there and you only need to update it via software.
Wasn't the firmware update going to happen around this time of the year?

I don't give this rumour much credit but if they sell a large number of USB HD Nintendo may drop the size limit on Wiiware titles, allow full DLC (CODMW2 MAPS!!), and start selling Dreamcast/GC games on VC - plus obviously a lot more N64 games.

There's not a current need but it'd allow so much more profit to be realized!

And who knows, they might get into movie downloads in NA/Others like they do in Japan.

With HD sizes this big, maybe they plan on adding Gamecube games to the virtual console?

Why bother when you can just sell them at retail?

Thank you, thank you, I'll be here all week!

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

That would be cool if it were true, but I'm not going to get my hopes up till Nintendo says something.

i doubt it. And the sizes are weird. Are they thinking that Nintendo is planning to use SSDs? That would be disastrous. SSDs are VERY expensive compared to SATA HDs.

Not true, a 32/64GB solid state drive on USB, that would be fairly expensive for just and add-on

Why are the sizes weird?  Also, SSD's are SATA HDD's.  Do you mean magnetic based?

And finally, these are USB so no SATA connection is involved.

Yes, this. My post was kinda confusing, but you understood.

The sizes are "weird" because the "conventional" HDs are 20, 30, 40, 60, 80GB... I've never seen a HD of 32 or 64 GB, unless they're SSDs or some kind of flash memory.