Here's my bit on this. I hope it answer you sevengen. I have had a 60 Gig PS3 since the day the console launched. Not once have I had to go and delete a games data yet. All of this and I still enjoy demos and download videos all the time. It's not as big of a deal as you think. Most games have very short install times to add to that.
I hope this somewhat addressed your thread. The only thing I don't understand is why you criticize the people who talk about the PS3's capabilities. The Wii cannot even play DVD movies. The 360's Arcade model comes with a 256 MB memory card which does not even let you play DLC without another purchase. It used to scratch discs and RROD every other day. Yet you say that mandatory installs are a huge enough problem for you to buy the competitions console.