game developers complain about 360. say lack of hard drive holds back system

i was reading of a gaming newsletter i got that some devolepers are complaining about the lack of a hard drive on some x-box models and that the people with hard drived consoles are getting shafted because of it. they said they are pushing the max storage of the discs for the 360 so they can't do everything they want to because they have to allow for non hard drives 360's when making 360 games or games for both the 360 and ps3.
http://www.next-gen.biz/index.php?option=com_content&task=view&id=10137&Itemid=2