Next week we'll have the Nexus 7 on hand as well.
The issue of expandable memory is a non-issue from what I see. It's rough to write up how it works where the players download as needed and shuffle things around between cloud and onboard.
BUT it is going in the direction I thought it would. That is, when you go play stuff you are given a choice to play from cloud or download locally and play as it downloads. I can't write in long detail or be very specific as this changes from app to app but it's a GOOD THING to see folk implementing ideas we have been kicking around the office.
What office? Just where I work where we are doing some Android apps.