You can easily get to that conclusion by gauging the HD storage shipping with each unit. Add to that the average speed of Internet in the US, and you have a poor situation for over the net gaming.
We're just not there yet.
Now maybe. The article mentions that it's a device designed for the next 7 or 8 years.
Sure, they can bolt-on new firmware updates and operating systems, but I think the way we use consoles will change quite a bit in the next 3-4 years alone.
But for Comcast, it was all about the up-sell. You see, they didn't want to just replace my old modem, they wanted to use the "opportunity" to push me to a more expensive plan (as I later found out) with useless "features" like IP-based voice call service. I had no interest in these features but the customer service rep assured me that my bill wouldn't increase and my connection speeds would be higher. What's not to like in this deal?
Of course, I find out when my bill comes that the new plan is $20+ higher due to the useless voice calling. People complain about NSA wiretapping but I would love to have access to the recording of that conversation to prove that Comcast lied to me.
Now imagine what would have happened if I had to be connected to the internet once every 24 hours to play games. It was bad enough that I had no internet for 7+ days but now I wouldn't even be able to entertain myself with single player games. I know it's beating a dead horse but the fact is that I should not be hindered in any way from playing Angry Birds on my console just because Anonymous is DDOSing Microsoft's servers or I just moved to a new apartment and don't have internet service or my internet took a dump because the cable modem kicked the bucket or because I'm just lazy and don't want to enter my WPA key into the console.
You can add an external hard drive (supports USB 3.0) and it can act as storage for games.