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I think the lack of internal storage is a far larger hurt than the lack of ram.  Even at half the rumored ram it's still a portable beast.  
The lack of internal storage will mean less people buying stuff on PSN upon which they make higher margins.  They need to integrate the NGP with PSN even moreso than the PS3 was. PSN worked for PS3 because every model came with onboard storage. Free demos and content such act as great advertisement and many NGPers wont be reached.  It's truly sad because with onboard storage and mic in every console day one NGP might have done better than PS3 at building a profitable and fruitful PSN community and helping Sony take back a little bit of American market they have so dearly lost.