Windows 7 to Ship on Flash Drives?

There's a rumor circulating in the blogsphere that MS is planning to offer Windows 7 on a flash drive which would make it third way to get the OS without buying a new PC. The other two are through download & retail DVD. While the decision is still being made, this move is being considered in the first place to appeal to the ever growing netbook crowd whose under-powered machines usually lack any optical media drive.

Having said that, thumbdrives logically become the easiest, not to mention fastest route to get Windows 7 running on a netbook. In fact, they have already become the unofficial install method for XP, Vista and now 7 if you are comfortable with command prompt. If tweakers can teach newbies to do it in 10 minutes, it should be dead easy for MS to get a Windows 7 thumbdrive package ready.