A few weeks ago I had almost bought a Datel 2GB unit so I could keep copies of my game saves after accidentally deleting them for a game I was playing off the hard drive.
Finding the official memory units, for me at least is kinda hard. I live in a small town and the two nearest Wallmarts don't have them, heck they don’t even have places for them with the xbox accessories anymore. The Gamestop two cities over only had a used 256MB unit for sale that I passed on. I went to the nearest Best Buy and they did not have the 512MB unit either, but they did have the 2GB Datel unit for $40 on the self and I almost bought it right there, but decided to pass and see online if I could pick it up cheaper someplace else. I was still mulling it over when the Preview for the Dashboard update hit and shortly there after the announcement of the 3rd party memory units being disables in the new update hit. I was a both a bit angry over it and relieved that I had not spent $40 on something that was soon to be useless.
I think the reason they are giving to cut down on cheating is only partially true, like many things like this (think DRM on music) it hurts the honest people more. In the end cutting off some memory units will be ineffective as when I was looking for cheaper prices online for the Max Memory unit I found places selling data transfer cables that let you transfer content and saves off the 360 hard drive and official memory units to a PC. This change at best it will only be a minor inconvience to gamerscore hackers and the like.
I would not mind the 512MB units so much if they were like two for $15 or instead of $40 (well just dropped to $30 fairly recently) and you could actually find them in stores. But as it stands it’s not a good option for people who want to backup saves and content because of price and capacity.
When retailers like Best Buy are selling 3rd party memory units with far more capacity and the same or lower price as the official ones, a person would be crazy to buy the official ones. I wonder if Best Buy is still selling the Datel units, if they are they are going to have some pissed off customers in the near future.
As far as the bone heads that say "get a hard drive" well having all your eggs in one basket is not a really good idea, especially with hard drives where is not a question of if, but when it will fail. I have a hard drive, I want a memory unit so I can keep a backup in case I do something stupid or the hard drive fails.
Talking about hard drives .... 120GB hard drive for $150 is just stupid ... looking at Best Buy (worst buy in my book) a Western Digital My Passport Essential 500GB external USB hard drive costs $110!! The Xbox 360 hard drive is just a standard 2.5" hard drive (like the passport) the only difference is it's designed to plug into the top of the 360 and has slightly different firmware so that the 360 recognizes it as official.
Microsoft if you really want your customers to buy online content, you should be selling the hard drives for something approaching normal market prices. Sell a 500GB hard drive for $150 and you stand to make shit loads of money as people buy more DLC without having to worry about space.