Consoles would be great if they came with some kind of software programs and downloading services, and included things like monitor screens and input devices with keys on them, for typing and such. Maybe a smaller, single-handed input device off to one side that rolled around and facilitated far more accurate, wireless pin-pointing of system and game features.
Even the install for PC games is rarely more than a few gigs. Also isn't there a limited number of insert/remove operations per memory card. USB devices are like 1500 cycles. Probably combination of those things.