Just remember it's early days, the only hardware this OS has to support at the moment is what they've shipped in the Steam boxes they've shipped out to testers. From the looks of it, we've just got the restore image for the Steamboxes, but because it's based on Debian there's plenty of room for people to put it all together. It like people trying to run Mac OS on non Apple hardware, you can put the drivers together yourself and someone will make the drivers for it.
The 1TB minimum does make sense if you consider what the purpose of the OS is, you need to download games to use it, It's a problem the real machines will never, run into because they'll all be physical machines (And it probably has some effect on partners who wanted to ship hard drives that are too small.
You can trick a VM into thinking it's got a 1TB drive though, just use "allocate on use" and the restore will probably grow the disk image to ~5-10GB max, I'm assuming you won't really be running games in it, since there's no graphics drivers, esp for a VM.
End of the day, it's Linux, by the morning there'll be 100 different guides for getting it up and running, I just want to see the options I've got for package repos and stuff, ideally I want my HTPC to run it, but I've got ~5TB of drives in there and I need to know I can get Plex running on it and it'll take over from Windows as soon as the streaming stuff is in.