It's an ease of use thing. It took me a half-hour to purchase one Wiiware game, with going into the shop channel, adding points, entering all my credit info from scratch, finding the game i want, downloading it, etc. And I haven't even run out of space yet. If I have to add to that time, time managing the memory by deleting things or moving things onto and off of SD cards, it's even worse. Why buy a Wiiware title with that kind of hassle then, when I can just pop in a disc and play immediately?
Granted that rant was about the Wii not the PS3 but it's a similar situation, especially with the large amount of free, big content available for download there.
Personally I think if people in general really found it to be a problem then they wouldn't be buying games with large installs. Instead, much like the Wii storage space problem, we have the vocal hardcore minority representing something like 1% of total owners.
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