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The rationale behind the new partitioning is that, with the new app market, people were running out of space for their B&N apps and content (magazines can also be space hogs). Instead of the former 1GB for B&N purchases and 5GB for sideloaded content, they swapped it (2GB go to recovery images, caches, boot sector, and etc in either case). As jswinden said, you can pop in a SD card to blow up that sideloading space, but whatever size the system partition starts at, that's what you're stuck with (short of repartitioning the device, which can be done if you want to root, but it's rather involved).
It is a PitA for those of us who buy the device to mod it, but you can still find some of the older NCs at retailers with backstock (Walmart has come up, and even some B&N stores).
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