I used to have this problem as well, and in my experience the secret to managing the mess of cables is to remove everything that doesn't have to be there. In this case, he could move the modem and router to another room (or different area in the same room). Though it would decrease the throughput rate, he could also attach the USB hard drive to the Airport and access it over the network. Also, since the only USB devices I see are the keyboard and mouse, he could get rid of the hub as well, and with all that stuff gone he could easily get away with a single power strip instead of two.
Now what used to be a huge rats nest of cables has been pared down to the MagSafe, the speaker power unit, and a single power strip, which is much tidier. My personal setup is very similar to his, except that I use an external screen with my MacBook instead of the laptop screen, and I connect it all together with the new Henge Dock that just came out.
you're correct in some ways, but it's not that easy. plugged into the usb hub are:
keyboard (could be replaced with wireless)
external hard drive - time machine. i prefer it this way than over wireless
iphone dock (hidden underneath macbook)
speakers - they are usb based
the second power board is simply there because i may need it in the future.
OK, it sounds like you have more USB devices than I could see in your picture, so the hub is necessary. Still, I think you should at least consider moving your modem and router, especially since it doesn't look like you connect your MacBook via ethernet.
Now what used to be a huge rats nest of cables has been pared down to the MagSafe, the speaker power unit, and a single power strip, which is much tidier. My personal setup is very similar to his, except that I use an external screen with my MacBook instead of the laptop screen, and I connect it all together with the new Henge Dock that just came out.