After a year of apathy, the app space issue is finally becoming more public due to Droid. Here is an Android dev's effort IMO to spin it:

"Kevin Dill - October 30th, 2009 at 5:53 am CDT

We have a partial solution at this time to some of the Android storage woes. Remote file storage is available for the Android which emulates local storage for predominantly multimedia. We offer that service at Android Storage. We are working on technology and an app which will actually allow apps to be stored completely remote and then be “temped” to the phone via a stream and operated under a master app. That will be coming before spring. This changes the playing field and allows devices to fully take advantage of “virtually” unlimited app and storage memory with the improvements in 3G, 4G, and WIFI availability."

Point is Kevin and the others knew about this BEFORE the newer devices were in development. They have known about it since launch last year, yet Android devices have stayed with the same memory size and no virtual space option on SD (G1 only has about 75 megs of free space and devices after that about 200)

What if central storage was their plan all along and that is why the devices have such low memory for apps? Perhaps they are banking on consumers being apathetic and blindly accept this lame ***** "solution".

They would then have more usage patterns for people and what apps they use and when. Has a little more of a big brother bend to it AND reduces the content rights of the consumer (if there are any rights in the first place).

Sorry for the conspiracy theory, but it seems the only thing that makes sense.