Really cool concept but they are intending to make portable a platform that is made with PC levels of cheap and easy to expand storage in mind. Many games will be fine with 32GB, but some (I'm looking at you, Wolf New Order and your 40+GB download) would be no go. Unless they are able to build it in such a way that games could be installed on memory cards that are easily swapped. That would be interesting.
I've got a bad feeling about this.