You completely ignored the essance of my argument. The threshold isn't the hardware anymore - it is the funding. No company is going to have enough money to build a game that big. Ever. This is what Microsoft was trying to change.
The point is, all that new memory - all that processing power, the remote cloud. It needs to be filled with something. Just becuase its there doesn't mean filling it is free. There is a quote from a 3d environment artist below that explains that without DRM there is no way the studios will have enough money to fill the thresholds of new memory they are granted - i.e. the advancement is essentially pointless to any studio that isn't drowning in money.