500GB drives are like $100 now, so you could hold more than a couple games. Plus they would load so much faster!

GD roms on the DC were sometimes over 1gb, but the ISOs were always chopped down to 750m or less. This was done either by removing cutscenes and sounds, but later by downsampling FMVs and sounds. Finally, groups like Paradox managed to split games into multiply disc, complete with a nice screen telling you to switch. Now that this exploit has been discovered its just a matter of time until a loader is made.

The 360 still requires a hardware mod that involves flashing the disc drives firmware, and even then you can only run backups. This software exploit is far, far more interesting since it should allow homebrew apps to be loaded, as well as using altered/hacked games.

This is far from a "non event". Its actually a major turning point in the PS3 scene, which is quite a bit further along than most of you seem to realize.