Can anyone explain why a Router needs 4GB of storage ?
What do they mean by "OnHub has 4GB of storage space, so there’s plenty of room for auto-updates and the latest software features." ? Is software for a router that large ?
The pure router parts? No. But stuff like the home automation features I can see why they'd fit more storage, especially in early versions where they don't know quite yet what they'll want to put in later. (Of course, swappable storage would be even better for that, but has other issues)
A local cache is of course useful for streaming video, but with home automation it can also be useful in the reverse direction. If your Nest cameras are not getting enough bandwidth to send up full 1080p back to the service, they can send 480p up to Google, cache the full-res video on the OnHub router, and upload the buffer late at night when bandwidth is more available.
The Apple TV has 8GB of storage, so when you start streaming a TV show or movie it begins downloading the whole thing so internet interruptions don't mess up your viewing.
So the question becomes, why not?