Beat me to it!
Yes, that's how it should work. Can't wait to get an adaptor and start using thumb-drive with N800.

Let's see -- what other USB devices do/might/should work?

• Mass storage - works
• HID - keyboards work, mice have same troubles as BT mice
• CD/DVDs - has no drivers
• Network adapters (Will power be an issue for some of these?)
  • Ethernet - Helpful, but do they work?
  • 802.11b/g - Redundant, probably less range
  • 802.11a,n - Could be helpful, do they work?
  • BT - Redundant, unless you need longer range... Then power draw probably kills you.
• Serial adapters (including USB interface on HP49G+) - Probably no drivers?
• Audio (USB speakers) - Not persuaded of utility, but might work. Probably no drivers?

Anything else?

Could people who have this working try any of those devices they have laying about and see if they work?
Since we're running a modular kernel, drivers should be simple to add for, e.g., usb-serial, or various network adapters. More complications arise in pursuit of, say, DVD burning, requiring a variety of drivers and userland tools.