I'd be interested in hearing how successful a UDF-formatted USB stick would be in the real world. I managed to find a discussion on superuser from 2009:
http://superuser.com/questions/39942/using-udf-on-a-usb-flas...
One fairly big problem you have here is that there are going to be zillions of consumer devices that expect memory cards and USB sticks to be FAT32 and nothing else.