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But on the other hand, you have the dilemma that they're already knee-deep in; introducing a new media format.
Look at Sony with their PSPs. Sony developed the UMD for the PSP, and nobody wants that. It's something they've struggled with, and has hindered the success of the PSP.
I know what you mean about the whole topic of running out of space. I'm no expert, but I would imagine they'd do it the same as they do the Arcade games today.
Run out of space? Delete something you rarely play. Next time you want to play it, just download it again. They'll know you've already bought it.
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