Full story.
http://www.psxextreme.com/ps3-news/2504.html
This is puzzling. Call me stupid but I believe that a bigger HD is a great idea, especially now that the the only other option available will soon be the frankly tiny 40gb console.
Add to that the rumour that the new beastly machine will have real bc, not emu and in my mind I think Sony are on to a winner. They can stick whatever price tag they like on that baby and it will sell.
It's alright saying that you can buy a cheap external HD for additional storage but that doesn't solve the problem of demos and PS1 games.
I have already had to delete a couple of demos I might have gone back to, simply because I didn't have space for new stuff.
In an ideal world I would like to see Sony provide a system update which permitted you to quickly zip ANY file on your HD and move it to an external drive so you could keep your PS1 dl collection on your Seagate and then just quickly transfer it to yourt PS3 when you wanted to play Wipeout/Medieval or whatever the game happened to be. That's just one example of how useful this function would be.
If copyright then becomes an issue they could have it so that once downloaded, the files can only be used on the machine they were installed on.