Sounds like the PS5 is engineered in such a way where the SSD really can be used like a giant RAM pool. It's good to see industry heads confirm it, although this is pretty much what Sony has been claiming all along.
My issue is the thing isn’t that large it’s gonna fill up so fast, you’ll have it filled up in like 5 games, then you’ll need to constantly delete and reinstall unless they have a workaround for that.
I hate to say it, but what if there is no workaround for this problem but at least games install / restore a lot faster?
PS3 installation was a pain. I still boot up the PS3 nowadays and it's so sluggish compared to PS4. That said, PS4 updates, patches, and installations are still "go make a sandwich" tier, but you can jump into the game faster in many cases. That was one of the original selling points of PS4, after all: you could partially-install a game and jump in. I believer there are loading comparisons between PS4 and X1 and PS4 performs better.
It's better than PS3. And the loading is miles better than the load speeds and limitations on my favorite SEGA Saturn or PS2 games, but the PS4 can still take minutes or hours to install/patch a single game.
If the SSD is fast, installation itself for a PS5 title should be very quick. The bottleneck would be re-downloading the files or ripping the files from the disc, but at least one facet of the installation process has been sped up. How long does it take to fully install Red Dead Redemption 2 on a PS4 Pro and download and install the latest patches? About 2 hours, I found out about 2 weeks ago. On the PS5, maybe a similar installation would only take 6 minutes. Another option would be partial uninstallations, where you uninstall the "core" of the game but retain the patches and save files (PS4 already kinda allows this). So a game might be 100 GB fully installed and patched, but you can store a backup of the installation that only takes up 20 GB and reduces the time it takes to reinstall from 6-8 minutes down to 1-2 minutes.
Still a pain, but less of a pain.
I'm not saying this is how it
will work in the PS5, but I could see it working something like that.