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I think this is another issue that only affects a very vocal minority. A few things to consider:

1. This is the first SKU for both systems. HDD space will go up with future SKU's undoubtedly.
2. You can swap out a bigger HDD on the PS4 or use an external HDD for the X1 (forthcoming)
3. Most people don't play 10 big retail games concurrently. You can always remove games that you know probably aren't coming back to. Even if you do have to re-install the game, long install times aren't an issue anymore since you can start playing within minutes of starting the install.
4. Cloud game streaming is coming, as early as 2014 for the PS4 via Gaikai. I'm sure MS will develop a similar service as well in the near future.