Personally, if you want to go the XT-IDE route, I'd consider getting a SD-IDE adapter to pair with it, like $10 from your preferred fountain of Rubbish From China.
Some CF cards don't work well with XT-IDE cards, since they often depend on some specific 8-bit modes that are not guaranteed to work, but SD adapters generally support it. SD cards these days are also more available and probably cheaper, considering you won't even need 2Gb for many retro machines.
Another option is an "ISA USB" card using a CH375 or CH376 chip. This requires software support (a DOS driver or an add-on BIOS ROM) but you can plug in a cheap flash drive and format/partition it like a hard disc.