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They're only talking about MMO games and what might happen if a game starts to exceed it's original requirements. And I don't understand what a Core has to do with any of this since it's for MMO games that require a harddrive.

I get the feeling they're basically saying that if a game exceeds it's original system harddrive requirements listed on the game's packaging that the game is still always playable if the user chooses not to allow the game to use additional harddrive space.  But if the user chooses not to allow the game to have additional harddrive space it may result in the game streaming assets off the server, lower res textures, and/or areas of the game that are off limits.

And I don't really see what the big deal is.  Didn't the Final Fantasy MMO game for the PS2 require a harddrive?