I have a Xoom with 32GB internal and an 8GB sdcard. I almost never bother putting movies or much music on it as it's just so convenient to stream. I only really want to watch a movie once especially if it isn't good enough to bother watching it on the TV in the living room so anything that hits my Xoom is in the watch it once and dispose of category anyway. Since I have flash, there are a plethora of places to get my fix on the internet and I have unlimited 4G on Verizon thanks to a grandfathered plan so I'm golden.

when i get my nexus 7, i am going to use a flash drive for more storage. check this: http://www.engadget.com/2012/07/21/ultimate-hack-nexus-7-hooks-up-with-external-usb-storage-flopp/ [engadget.com]

Not really. Google's products have always been popular in the right circles. The thing is, Google's previous physical products have been phones. The vast, vast, vast, majority of Americans buy their phones subsidized on contract, if the Google Nexus Phone X isn't there in the Verizon, ATT, T-Mobile or Sprint store, most people aren't going to buy it. Even among early adopters who look online they see $600 for a phone and can't justify paying that + contract price (and on contract is really the only way to keep a decent data plan today). They don't see a $600 phone when they buy the phone that costs them $50 on contract, they see a $50 phone. When you show them Google's phone, they see a very expensive piece of technology and understandably aren't buying it like crazy.

Tablets are different. Your average American isn't comparing the Google price to a substadized price, instead they are seeing you can buy a $200 tablet from Google, a $200 tablet from Amazon, a $400 high end Android tablet or a $500 low-end tablet from Apple.