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While impressive, it's probably not necessarily a good thing.
I wonder how much of that traffic is due to inefficient updating.
Does their content delivery system support delta updating, and how well compressed are the files?

Procedural textures are used in games, it would perhaps be more efficient download wise, to generate these on the client side, rather than in the development studio.
A problem with using the console's hardware to generate procedural, is well, the console hardware itself.
They really aren't that powerful, and it'd take a fair amount of time, and power to do it.