Given the specs, it seems Zeebo might be going for something like Apple's Web Apps. Maybe that's why it doesn't need a whole lot of storage. Or maybe I can't come up with a better explanation for why phones will have more storage than gaming devices in 2009.
During his WWDC keynote, Steve Jobs touted iCloud as a service that will sync many of your Apple devices, for free. Macs, iPhones, iPads, and even Windows computers can synchronize documents, contacts, calendar appointments, and other data.
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Given the specs, it seems Zeebo might be going for something like Apple's Web Apps. Maybe that's why it doesn't need a whole lot of storage. Or maybe I can't come up with a better explanation for why phones will have more storage than gaming devices in 2009.