LinuxBIOS-->FILO-->read ELF on USB flash makes sense.
I've been thinking about doing something similar with my Xbox.
As some of your may know, the Xbox has an open source BIOS called Cromwell
that boots to an intermediate stage where one can select either HDD,
DVD, Etherboot
to boot a Linux kernel or enter a BIOS setup area for video mode, HDD
type, etc.
That model works fine with the exception of not being able to boot from
USB flash devices.
All that is done in a 256K flash ROM space. I believe taking advantage
of the flexibility of USB
flash devices is a great idea.
David