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makingmusic476 said:

Aha!  So this IS cloud storage!  It jsut has to be implemented per game.

From Joystiq:

Future titles will offer the ability to save directly to PSN, Sony says, bypassing your local HDD entirely.

This makes sense, given when news of 3.60 was first leaked a month or so back, the leak-ee said it would be up to the developer to imlpement the feature.

I hope they make it mandatory.

Awesome, that certainly gives me hope. Now we just need developers to start using it, and using it alot!