I've been reading everyone's topics about losing the HD and I have some ideas as to how this could be beneficial to Xbox Next if this were taken out of the system.
1. Less money to purchase new system. Ditching the HD would lower the price of Xbox Next considerably since it's very expensive. You'd probably have to pay a lot for the memory units though. Hopefully they'll be cheap.
2. Portable saves. Having your saves on a memory unit prevents you from losing your information if ever something should happen to your Xbox console.
3. Portable custom soundtracks. If they do this they should make a portable device for listening to your songs, this would be sheer genius on Microsoft's part. Hopefully the memory cards will have a lot of memory on them so you can have lots of music without having to sacrifice game save storage. And hopefully you can take your stuff from the Xbox HD and transfer it over so you don't have to burn it all again.
4. Portable download content. That's how they'll take care of that problem. It would be nice since you'd be able to take your downloadable content to a friend's house and stuff, along with your XBL account.
5. Keep some internal space for game to use. That way games can still use some internal memory when needed.
6. No HD means less money to make the console. Which means backwards compatibility wouldn't be completely out of the question. Use that extra money that yer saving from taking out the HD to let gamers play the original Xbox titles on Xbox Next.
7. Anything on your HD should be able to be transfered to an Xbox Next memory unit. Pure and simple.
These are my ideas for Xbox Next and how they should go about doing their next console. Anyone who has their own ideas post em here!