I've got a Xbox 360 with a 20GB HDD and a 16GB Flash drive. I know it's not much space, and hell I don't have Xbox Live anyways so I really don't care. But, sucks for PS3 users who have 12GB PS3s. I can see those being discontinued pretty soon. My 360's HDD is 13GB but is supposed to be 20GB, The OS takes up half of that. The 16 GB flash drive is the same way, it's only 13.9 or 14.9GB as opposed to being 16GB. False advertising at its finest. I hate how boxes false advertise.
I sure hope they don't do the same thing for 20GB HDD owners on Xbox 360, I really don't feel like buying another HDD just for a little more space. Those DLCs better fit on the space I've got available.