Xbox 360 USB storage options?

Joystick is showing what it claims to be the next Xbox 360 update. What is new in this one? Well, USB storage for one! Now this sounds awesome (in fact it IS awesome) but it does come with limits. No plugging in massive external hard drives instead of shelling out for Microsoft's insanely overpriced versions. You will, as of now, be capped at 16GB per device and a max of two used at once. That said, it will still be a welcome addition for those of us suck with the crummy 20GB 360 drive.