Well, the cost of the system is going to be $300-400... isn't that how much most of the current systems' MSRP started out at upon their initial release? Hell, the N64 started out at about that much, and it's not as advanced as this system is. And why are you putting down a system that uses the internet to digitally distribute its products when you're using a message board that revolves around a console THAT DOES THE EXACT SAME THING for 99.9% of its products. And how many games can a 120GB hard drive hold? Let's see, if the games are as large as 5GB like you say (which I doubt, DVD games aren't even that big) then 120 / 5 = 60! I personally think being able to hold 60 games is an impressive library. I would hope that they would be smart enough to release an external storage device to hold more games. The 'rental' idea is relatively nice, but I don't see how well it will work unless it uses a time signature to delete itself after so many days.
Infinium Labs is just trying to help keep ushering in the idea of utilizing the Internet for console gaming. This is a concept that has gone back as far as Genesis and SNES (I think it was called XPlay or something like that, something that evolved into MPlayer for the PC), something that is finally working with the latest incarnations of home gaming platforms. Yes, the fact that it completely revolves around having, and using, high speed internet connections may be its downfall, but no one can predict the future for this console.
That was MY 2cents.