When you purchase a retail game, and install it to your HDD, it also becomes available to you as a download. So long as you never trade-in the game, you can install it to any Xbox One device, including your own by downloading it.
When you download a game, you'll be able to stream it in the background while you're playing it. Much like when you install it to the HDD.
So, while yes you may have limitations on how many games you actively have installed to the HDD (lets assume 10-20), you can delete any of your games off your HDD and play them at anytime by streaming them from the cloud.
I don't believe the same will be true of DLC.
Also, for those who would rather have everything on local storage, you can plug an external HDD into the console and copy your content from the console onto the HDD. No more proprietary storage options, though the HDD will likely be require to be formatted for the console.
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