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Selnor:

But just because that option is there for developers doesn't mean they'll take it.

It's possible to make a game on the PS3 with no install and no load times, and yet almost no games take advantage of this. An install isn't needed in any PS3 games (multiplat or otherwise) for decent performance - Capcom, perhaps the worst PS3 install offenders, have acknowledged this - and yet many developers have fallen back onto this technique just because it's easy and cost efficent.

I honestly wouldn't be suprised if only very few 360 games took advantage of the possibility to install the entire game onto the harddrive for much the same reasons.