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@Griffin...
What are you talking about with Oblivion? the only load time that takes that long on my xbox is when i first load the game. It usually takes no more then 15-30 seconds while playing the game, and only while going into another building or something. Ive played Oblivion for friggin ever and never had the problems your talking about, or even the problem of walking around and having load times while doing that.

Maybe your cache is fragmented. Try holding down the A button while the game is booting, that clears the cache, maybe itll help.

Back on Topic:
I think the bigger problem here isnt necessarily the whole "its worth it" deal. I think the issue is whether or not more developers take this stance with their games, eventually it may become more difficult to play a game. Instead of just popping in a disc and getting to play, you will have to deal with having to clear up space BEFORE you can even play a game. Which would suck cuz the play reason i have a console is cuz i can put in the disc and it just plays.