Good point none.
Actually, if you look in the right places, a 1tb external drive can be found for slightly above the $100 dollar mark, I might be mistaken, but I'd assume an internal drive would be a bit less. I bought my 500gb external drive over a year ago for $60USD off of amazon.
Hard drives are definitely not a bad way to go, but I would never be content with storing stuff I found of value only on a single hd.
Do you really think this community has produced 300-400 DVDs over all these years? I might have estimated it at somewhere around 100, give or take. I guess an ungodly amount of Prequel edits have been created, but I'd have a hard time believing the numbers to be that high. Not to mention, there are plenty of outdated releases out there and redundant material that would not need to be preserved.
So yeah, an ideal setup might be a 500gb external hd filled with image files (and a secondary 500gb backup drive kept in a safe place) that could easily be plugged into a PS3/Xbox/Wii/PC/etc. for playback. If someone wanted to go through the trouble and get really fancy, they could even make themselves a fancy slip cover or storage case for their HD.