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Originally Posted by ProDigit
I've heard that the H2O has an SD card inside as main memory.
Not sure if that info was correct though...
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That is correct.
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SD cards tend to go corrupt a lot faster than flash memory.
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Not true. SD card storage IS flash memory, just mounted on a removable card. So if you are not inserting and removing it frequently then the service life should be the same as other flash memory.
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In case my device breaks down/bricks, is there a way to upload Kobo firmware on another (micro)SD card and insert it in the device?
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Yes you can do this. This is one of the main benefits of having the internal storage on a removable card. Another one is that you can ugrade to a larger card by copying the old card to the new one and expanding the user partition to fill the extra space.