1GB is for OS/Apps and that level of stuff right now, but as it begins to finalize, Nintendo will reduce that limitation. (Sony did the same thing with PS3, started high for OS and then cut that quite a bit a couple years later)
1GB is for Games,meaning all memory is 1GB shared.
32MB eDRAM is also available for games and is really a lot of eDRAM.
That is plenty of very fast high-end memory for a dedicated console.







