actually, I think what your thinking of was the expansion of the PCI-E standards to allow for external devices.
notice I said devices, as any pci-e will work in just about any pci-e slot (as long as it physically fits). IE, your 16x card will work in a 1x slot, if the slot is 'open ended' meaning the end of it is open, allowing larger cards to fit. Now, you wont get the bandwidth you would, but it should indeed work.. slowly.
the common thought of the external devices would be high end graphics products, due to the amount of heat and power required, and an external device could have its own power source (as you mentioned)