I have to join the crowd and agree. They should have released it with a gig of flash memory at least and then planned for some external storage products for users...playing directly from an SD card or some other external storage device would have been great. XBOX live is awesome and I love it, but it doesn't have an internet browser. The Wii's browser and other features are awesome, but I'd love to have the best of both worlds between WiiConnect and XBOX live. I think in hindsight, they should have released the Wii as is (with more onboard flash mem) to keep it in the price point they wanted, but planned/designed the system for more flexible expansion.
Love the Wii, but for an online console, XBOX blows it away. An add on for Wii that would allow you to download all sorts of multimedia and have it accessible would have been awesome.