I think the device itself can probably handle it, then space might be an issue. Even though I have over 2gb free and could (hypothetically) download a movie I wouldn't take the time to do it. I have a fast broadband connection at home and I download songs under 1 minute or even less, but what if I needed to suddenly go someplace?
Waiting just a couple of more secs to leave and download some songs isn't that big a deal but waiting 30mins or so for a 1GB+ movie to download is another thing... It also applies with tv shows, is not much of a technical difficulty but a time consuming issue. Then again, what if someone had a very slow connection yet it can handle some songs, I doubt it can handle a movie in less than a couple of hours. Just my two cents.
-Victor