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nightsurge said:
My only concern with the 16GB models is... after like 4-5 games, won't they run out of space if those games require installs? They could run out of room after just 1 game depending on what the game is, and also taking an understanding that probably a good 2-3GB of that 16GB will be reserved to the system.

I can understand the cost savings, sure, but they better make sure all games in the future are capable of being run without big installs!

most games don't require a big install, 1 Gb or less.  There are exception of course but it is no different than the 4Gb 360 in the way that installs will have to be managed by the user.  The largest install out there is GT5 at 10Gb (which is technically optional and can be as low as 256 mb).