I'm pretty sure many will not see this as bad news:
http://www.1up.com/do/newsStory?cId=3156520
"The Xbox Live Arcade file size was capped at 50 MB to accommodate consumers who purchased the hard drive-less Xbox 360 Core SKU (those consumers had to use one of Microsoft's memory cards). Under condition of anonymity, sources revealed to 1UP that the file size for Xbox Live Arcade titles has been increased from 50 MB to 250 MB and with Microsoft's approval, that size can be expanded to 450 MB. When asked for comment on the reported change to file size, Microsoft said, "We do not comment on rumor and speculation and so we can not confirm that rumor. Aside from the exception we granted for 'Castlevania: Symphony of the Night,' we have not announced any plans to alter the file size standard for Xbox Live Arcade games. However, adjusting the size limit is certainly an option in the future, and as always, we are listening to feedback both from gamers and developers on what will provide the best user experience. Whatever choice we make, we will hold a position that provides for the best possible Xbox Live Arcade gameplay experience."
http://www.1up.com/do/newsStory?cId=3156520
"The Xbox Live Arcade file size was capped at 50 MB to accommodate consumers who purchased the hard drive-less Xbox 360 Core SKU (those consumers had to use one of Microsoft's memory cards). Under condition of anonymity, sources revealed to 1UP that the file size for Xbox Live Arcade titles has been increased from 50 MB to 250 MB and with Microsoft's approval, that size can be expanded to 450 MB. When asked for comment on the reported change to file size, Microsoft said, "We do not comment on rumor and speculation and so we can not confirm that rumor. Aside from the exception we granted for 'Castlevania: Symphony of the Night,' we have not announced any plans to alter the file size standard for Xbox Live Arcade games. However, adjusting the size limit is certainly an option in the future, and as always, we are listening to feedback both from gamers and developers on what will provide the best user experience. Whatever choice we make, we will hold a position that provides for the best possible Xbox Live Arcade gameplay experience."