USB 2.0 is much slower than SCSI/IDE/SATA, the standards for internal Hard Drives.
However, flash memory has a MTTF (mean time to failure) about ten times as long as a physical hard drive. They last FOREVER; there's no moving magnetic heads, like an ordinary drive. Samsung is actually working on a laptop which uses flash for the entire system drive. It's Shock resistant (500 Gs), has low low low energy consumption, and has an even lower rate of failure.
For speed, USB2.0 (and thumbdrive) is not the solution. An internal 7200 or 10k drive will be faster. For security and data integrity, a thumb drive isn't a bad choice. And look for Flash drives in the future.
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