How many games is the average person gonna download? The SD solution is there but I think this is better than Sony using the "all our consoles have hard drives" thing for mandatory installs.
If its just used for installs, great but the last few XBL games and demos have weighed in at a gig or more
Looking at comments though, I will say i'm a fan of limiting onboard storage. Games shouldn't need installs and download-only
games shouldn't be more than a gig or so.