Rumorama: XBox Slim In The Works?

Currently, there are new rumors of an XBox 360 Slim in the works, with pictures emerging from Kotaku of a new motherboard for the system, supposedly. The redesign includes a merging of the GPU and CPU, which would mean a remake of the structure of the XBox 360 as well as a physical reduction. One can hope this won't lead to problems in the hardware, but recent PS3 issues have shown that software glitches can affect some systems and not others, depending on their hardware.
The timing of this leak is pretty close to that of the PS3 Slim's photo leak last year, a few months before Gamescom. We're just a few months out from E3 currently, so it's about the right time for us to be looking forward to thing being announced at E3--possibly an XBox 360 Slim among them.
So what do you think? If it happens, would you be in the market for a 360 Slim? Will it be a likely announcement for E3, and will it include Project Natal as a pack-in?






Merging of the CPU and GPU, and it being under one heatsink sounds like trouble.
If they are making a Slim I pray it has Bluu-Ray capability! if it doesn't I'll just save my cash for a PS3 or something rather than an upgrade.
I also hope it includes WiFi and allows us to use any hard drive instead of a proprietary one.
It won't have blu-ray, since the games will never be on blu-ray discs. I could see it having built in wi-fi though.
@ReignFury
You'll get part of your request soon without buying a new system. The spring update to the Xbox 360 firmware will allow you to use any USB drive (up to 16GB of space if the USB drive is larger than that) to store saves, DLC, and games. It's not perfect, but it's a start.
As for the prospect of a slim 360. As long as it's quieter than the current model I'll shell out the cash for an upgrade. I still have my launch system, and have it next to my desk (don't have an HD TV, but I do have a monitor with a VGA port) and people say they can usually hear the fan going from a few rooms away.