There are a couple utilities out there that you can use to access and flip the "Removable Bit" value on USB drives to toggle them between removable and fixed.
Can also confirm the cruzer 16gb shows up as external hard drive instead of a removable drive. I was considering buying a special drive a few weeks ago, and a few weeks later was like huh , i've had one all along... Got it at best buy for 9.99 about 3 months ago.
The software for flipping the bit only works with controllers the software knows how to handle, which there are thousands of controllers at this point, and no software seems to have been updated with any newer controllers.