We've had "capsule-less capsule" machines for years here and they've been a moderate success so far (the system's called Coffee B)
I never understood why people got into coffee pods, even those little balls still cost around 50 cents per serving. My tiny Dedica espresso machine cost less than 100 bucks and can make decent espresso from pure high-quality beans for what, 10 cents a serving? I do use a full metal/wood 51mm portafilter from Italy, not the plasticky nonsense that shipped with the machine, though. So 90 bucks for the machine, 40 for the portafilter, 60 for a grinder (OK, I got that one used), that's gonna start saving you money after less than a year at a coffee a day vs. pods.