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That's a fair point, and such a device wouldn't be for you.
It's more for people who are streaming most of their media content. Though on the video front that's challenged with the lack of flash.
But such devices with limited storage and options will probably become more of the norm going forward.
In a decade or two when faster broad band is everywhere we're going to see the end of actually owning media content unfortunately. Companies lose too much on piracy and sales of used CDs, DVDs/Blurays, Video games etc. It will eventually all be streaming content you pay for access to, or digital downloads tied to your account etc.
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