So...there is (still) clearly a lot of confusion about capabilities. As a long-time iOS Dev, here's a ProTip™:
When you read a dev complaining about something they have to do on a blog somewhere, take it with a grain of salt. it isn't about the capability, it is about the work
There are no current console games on the market that cannot work on AppleTV, should the developer decide to put in the "work" of implementing on-demand resource loading. It is literally about 2 hours of rework from what I've seen/helped a couple of indy dev implement.
The way Apple designed the system was really meant to be as pain-free as possible to realistically support multi-gigabyte game titles without having to resort to high-heat, high power fixed disks. A little planning on a "look-ahead" scheme makes the whole thing transparent to end users. The implementation in reality is very similar to what Sony and Microsoft have on their consoles.
-K
I'm going to take a guess and either
1) they raise the limit to 500MB per app
or
2) you can host the app contents on your Mac mini/iMac/MBP and use Home Sharing or something to get the full payload.
Why would they? ATV supports apps up to 20GB in size via on-demand. Really, you have to see it in action to understand how it works. Like many things "new" and "different" there is push-back due to lack of understanding. End users in almost every case would not experience any detrimental effects:
1. Go to App store, download something. Instead of taking hours, it takes moments
2. Start App - While the splashes and stingers are running, a large chunk of the beginning of the game is downloading
3. "Main menu" - stuff is still fetching in the background, tutorial/level one/whatever is already waiting
4. Start playing.
It is a really elegant and simple scheme designed for a better user experience. Why people seem to believe things that are demonstrably not true, I do not know
-K