There have been games that required a HDD almost since launch. This isn't new, and neither is that icon. There's no evidence that MS are dropping the Core either.
As for their blurb about the game size and AI that the original Xbox was capable of being because of the HDD, that's not true. Neither is it true to say that the HDD meant you could fit more data on the DVD.
That's a none article based on rumours currently floating around the internet, mistakes, presenting an old icon as as new, and supposition.
We already know that games can require the HDD, and that MS can allow the HDD to be used to get around DVD space limitations if they so wish. Time to magic up a "headline news" article...