TronMan

Best case scenario is that the 250GB drives are the last proprietary Xbox HDDs made and MS moves over to fully utilizing external USB drives. Having the 16GB cap be permanent is the worst case scenario, but I think MS will open it up some in order to get more people to invest in the Xbox Slim- probably no more than 30 to 40GB unless they phase out the 60GB HDD.

Hackers are already exploiting the hell out of the XBox. This just makes it a bit easier to do so- and if hackers manage to fiddle with the firmware to make it accept higher capacity drives, it might be worth it as long as MS doesn't ban everyone with that kind of modded firmware.

Of course, MS might do it anyway to protect sales of their overpriced HDDs, but lets hope they have enough common sense to avoid that.

You never know, they could relocate the drive dock somewhere else and make new enclosures that don't ruin the exterior aesthetics. But I'm hoping that once the 360 Slim comes out, Microsoft will raise the cap to at least 250GB, hopefully 500+GB.