Forced installs is ludicrous, especially if the console really is using blu-ray tech. A 1 TB HDD would probably hold 25-30 games full games; this is excluding HD movies, HD TV series, DLC, Patches, and Downloadable Games. How are they going to make a user-friendly transfer system between consoles, especially for the basic consumers?
I doubt most general consumers are gonna go out and buy a larger HDD after theirs fills up, ultimately putting them on a spending freeze for the console. They better put a huge HDD on the box at launch or this will bite them sooner rather than later.
Are hard disks read-only memory or something?