There's a rumor by way of technology blog Ars Technica that the new black 360 and the new standalone 120GB hard drive will come with a cable for transferring all of your data off your tiny, old 20GB drive:

I work for a large game distributor. MS disclosed this SKU to us a few weeks ago-definitely not a fake story. Price, features, color are all correct. MS has told us that the data will be transferred via some sort of cable that will be included with the unit. The cable will also be included w/ the 120GB drive that will be sold separately (price TBD).

A cable, you say? For transferring data? Sounds like witchcraft to me!

I think I'd really prefer that Microsoft just implement a "re-download everything you've paid for" button on the Dashboard. And maybe they could work out a way to store your game saves remotely, too? Ah, well, I suppose a cable will do.

via Joystiq