My Asus Transformer has 64GB internal, 64GB on a microSD. Add a USB dongle, and it can use a USB stick or HDD, even NTFS. Add the keyboard, and you get USB and a full SD card slot, great for backing up or offloading cameras on the road.

I think Google is cutting flash to save costs. But also, they are pushing the web centrisim as their mandate. Which is fine for some people, but a big problem if you don't have good, constant internet access.