Meh, if I had a PS3, I wouldn't mind that much.
I actually think it's kind of better.
I'm the type of guy who does not keep files for very long and after I delete them, I don't miss them. I won't keep a gameplay trailer in my 360 harddrive after I downloaded it from XBLM and watched it. I always seem to have room, and when I do get a PS3, it's going to be the premium (120GB+ or whatever), so space isn't an issue. Damn, time isn't an issue either, I could wait 20 minutes before I start playing a game. I usually spend that much time reading the game manual before I play!
Thanks for reading :)
http://www.youtube.com/watch?v=iyLhpUPNPIs
360 IS OPERATIONAL AFTER 37 DAYS!