Points about Android to some degree are really like a rats in cage, because at best, you will have 150 megs of free space for apps. No more. This will not change until future droid devices add more memory so there is room for apps. Virtual micro sd space is not an option unless you can root the device, format the SD with Linux and add modified firmware. 99% of the install base will not do that (if they could).

I you are an app fan, Android will give you very little room to play with.

To me I think this issue is going to hurt the platform badly since the entire install base has very low app space.