Chosen Solution
Wondering if anyone has figured out if a hardware upgrade is possible
No, as the storage (I think) is a chip on the board (pictured) so it would be next to impossible to replace.
It would require a hot air soldering station to remove the flash chip. The chip is then put in a reader and cloned to a new similar but larger flash chip. Some editing to the partition sizes before the new chip is installed back into the quest. It could cause issues when going to storage levels above native options though. Updates might cause problems or Oculus/Facebook might detect the modification.