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I agree and disagree at the same time. Now, I don't have a huge problem with installs (seeing as I've mainly been renting games), but I'm pretty sure that caching game data was one of the reasons the PS3 has a hard drive in the first place.

Uncharted is a good example of not needing the hard drive and I think game installs can/will become a problem in the way of inconvenience as the library of games that do it increases. At the very least, optional installs should be implemented where if you don't install the data, things could take a little longer to load and you'd be able to play a game right away and then install the data if you'll be playing it for a while.