Well said! I have nearly the same issues as you describe and have done the same research and came to the same conclusion. I spoke with a tech at Verizon and they informed me that the issue is Motorola's, not Verizon's.
I went to Motorola's web-site as well as emailed their customer service and based on their response it's clear Motorola feels they have a monopoly and don't need to change.
There is a lot of chatter about Cisco getting into the business to compete with Motorola by offering more storage space. It is rumored that Verizon is going to be their first customer, but no release dates that I could find.
I would love to change! I have had lots of billing issues with Dishnetwork that have been extremely frustrating (their service people took a DVR with them that never showed as returned) and their picture quality and on demand is lousy compared to FIOS. But 20 hours of HD recording would be filled in a week.
Cisco bought Scientific Atlanta a few years ago, and they are just now completing the rebranding. The Cisco 86xx series is already in use by time Warner/bright house. They have been having issues with resolutions randomly changing and other oddities. The Motorola 7232 should support esata and/or USB expansion, according to the official FiOSTV twitter. Last I heard, the cisco's had run into issues in engineering, and weren't field testing yet. However, the latest STB activation guide makes a reference to Cisco boxes. The Motorola 7232 is due out in the fall, with (hopefully) esata support to follow soon after.
OK, a long, long time has now elapsed. Are there any new news on the increased space front? My contract is coming up for renewal in March 2012 and I'd really like to be able to get more space. What with all the other options I now have connected to my TV, getting 20 hours of HD is just not cutting it anymore.