If this is true, I'm gonna go ahead and call it good news. Presumably they'll finally kill any issues with reliability, and come up with a console that's built to last. And if that is indeed a 2.5 inch HD in there, maybe it'll be as easily upgradable as the PS3's is (though I seriously doubt it — I bet MS makes a lot of money from their overpriced hard drives).
Anyways. Assuming this launches at the standard $300 price tag, or even lower, maybe, I'd think about buying one. Typically EB offers a deal where you can trade your old console and a couple games for a massive discount on the new one, so I'd probably go for something like that. It'd be worth it for peace of mind (at fucking last).