LOL @ the Techmo comment.
And I agree, I dont think the Japanese will warm up to it, consumers OR developers, and I think as long as this is the case it will have a hard time achieving the level of success that sony has. I also agree that not going with a higher capacity format might be a crutch later on but I dont think it will be that big of a deal.
About the rumors of there being different 'trim levels' of the Xbox 2, IF they are true, I think that is the BIGGEST mistake they can make. It's been proven in the past that having mulitple choices of the same system is usually, commercially, a bad thing. I guess it tends to 'confuse' consumers... 'Well which one should I get? Which one is better? what am I getting from the more expensive ones?'. It also makes it hard for developers to fully explore the potential of the system... if they make a game that takes full advantage of the 'top of the line' system, then obviously the people with the more basic systems will miss out somehow. If they make a lowest-common-denominator game, then the people with the high end system feel like they arent' getting their moneys worth. It's just better to only have one choice. And IF they don't ALL have harddrives they are shooting themselves in the foot, as stated above the Revolution and PS3 are supposed to have them, and the Xbox 1 showed that there was much good use to be had from a hard drive on a console... it was probably the best new feature seen on a console since analog control, for someone to decide NOT to put one on the Xbox 2 they would really have to be stupid to cripple the system like that.