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If 2mb was a standard bundle for 500+/600 then they could have made 2mb sized levels for games but really it's not going to make better games, less repetition in graphics/sound perhaps but from a gamers point of view it's not really important.
If you want to do 28khz stereo sequenced sample loop based music for 'MP3 quality' it does make a massive difference yes. There are some 1mb only MODs that are pretty close to what people listen to on YT music videos, Zoolook comes to mind.
Depends on the user requirements really.
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