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day 1: install game 1, play game 1

day 2: install game 2, play game 2

"..."

day 5: uninstall game 1, install game 5, play game 5

day 6: want to play game 1 one again, oh wait, uninstall one of 4 games to play game 1

etc etc.

To say "just buy an external HDD!" is like saying "don't like the console? then buy a PC!"

Most gamers are still "casual" gamers who don't want to need extra peripherals to play their games. People with the 20GB and 40GB (and if this keeps up, 60-120GB also) are not going to be happy with this development.

I guess Wii and 360 are the only next-gen consoles as Sony is just leaving the console market all together.