USB has no finite numbers for failure. Flash memory does. Flash memory does not fail due to reads it failes due to writes. ESX in a USB/SD boot configuration doesn't do much writing to the device and its highly unlikely that you're going to fail due to wearing out the Flash memory. DO NOT USE A CHEAP USB STICK OR SD DEVICE! The company I work for previously resold branded/customized USB flash drives for various companies, the number one failure mode is cold solder joints breaking lose when we would make the mistake of buying cheap sticks to start with. There are 3 basic classes of USB stick you'll find. Throwaways - these are the ones you get at some tradeshow or as a free gift. You don't want to use these for anything except maybe having one around handy to show how they fail. Then there are the consumer level you can buy at a store from the big three manufactures. These are typically OK and if you use the tip below can be viable, although I'd be hesitant about using it in a production environment, I do use an over the counter one for my ESXi server at home. If you can find a high quality USB stick you are safer than with a hard disk as they are solid state devices and rarely fail. The only problem is finding one of this class, HP gets them, which is why you pay $50 for it instead of more like $10 or so like the going rate for a 2GB device. Unfortunately I can't tell you where you can buy one of these as a end user, our company had to jump through hoops to finally get that level of drive and finally actually found them via a goverment agency that pointed us at where they get theirs. I wasn't part of that process so I'm afraid I can't point you in the right direction.
The reason USB and SD cards are an attractive way to boot an ESX server is because they can be replaced practically instantly, and since ESX doesnt' do a lot of writing to the card they will last forever from a practical perspective. You will occasionally have a failed drive, but due to their nature you are far more likely to lose a high quality SCSI drive than you are to lose a high quality SD device.
I would use SD if at all possible. Even buying a 'high end' SD card at walmart will out perform any USB stick you're going to put into it, the SD interface simply allows for more bandwidth than you'll get out of USB in the real world so you'll shorten your boot times and SD cards in my experience are more reliable due to the manufacturing processes. If you go the SD route, don't use an adapter from one SD size to another to fit into your SD controller. Corrosion and heating/cooling cycles will eventually break the contacts on your adapter cards and you'll end up with a failure thats very hard to track, half the time a reboot will fix it the other half the time it won't. Removing and reinserting the sd card from the adapter and the adapter from the reader usually fixes it, but if you just avoid the adapter you've taken one more point of failure out of your system for no work other than buying the right card. Micro SD cards (possibly mini as well, not sure) use a lower voltage, run a little cooler and will probably last longer but thats just a theory/common sense guess on my part, I have no actually tests to confirm it.
If you have a relatively static configuration such as mine you can give yourself some breathing room with USB or SD in the case of the boot drive failure. After you have the server all setup, vms, networks, boot options and all that configured, shut it down, pull out the USB/SD device and use something to duplicate it. If you're using Windows and making your own USB/SD boot device than you've already used WinImage (or something like) it to get the boot image on the drive. Just use WinImage to duplicate the existing USB or SD device to a second one. I leave my second taped to the server at the datacenter. If all else fails, a call to the data center can get my a general idea of whats on the display and if need be they can just swap the boot device for me and power cycle it back to a working configuration.
My personal reason for going with USB/SD is this: Easy replacement of the entire ESX hypervisor without touching my data disks. If you end up with some weird breakage or stupid mistake like I've done (upgrading to new versions which no longer support your old non-VT supporting processors :smileyhappy: you end up needing to essentially reinstall or do a bunch of work by hand to fix your mistake. With the USB device you can simply remove it, reimage it and start reconfiguring (if you don't have a backup image of your previous USB/SD boot device) and you're off.
I probably use ESX just slightly more so than you intend to to start out with, but our company is not really a hard core ESX user. We only have 2 machines and they are used to run a ton of QA and testing setups, we only have backup domain controllers on them as far as production/important VMs so our ESX server going down is a hassle to a couple developers, but they can just run most of the VMs directly via file shares in a pinch if the server is down. I think SD/USB is the better way to go for you, but if my butt was on the line because the ESX server ran critical machines, I would likely use a good RAID and just use the old tried and true methods since those really are the best tested and most likely to have the least problems. Fortunately for me, my butt isn't on the line and SD card take home the win. :smileyhappy: