Just to clarify, you do not need a large amount of internal memory. I use my usb drive all the time on my iconia, its really convenient.
I have many large size bluray movies and I do want to feed the device thru the external and have eliminated Apple products for that reason. I don't want the extra step of uploading into tunes and my other requirement is to not have to convert the movies to a lesser format.
So the iconia or transformer type devices seem to be the best solution. Thanks for all of the input as it helped greatly. If anyone can think of anything to add...I'm listening.