That's a shame, so you're saying if Street Fighter IV comes out on Android that it'd just install the .exe in on-board memory and save the rest of the files to an SD card which can range from Class 2 to Class 6 (or Class 10) which may cripple the game? Yeah, I can see more complex apps doing what "your company" does.
There is no crippling. It's what any app has to do, and really a class 2 SD card is plenty fast enough to pull any data off of (except video) that you won't even notice the difference unless the programmers are idiots. You cache and stream data if you need it at a moments notice.
It doesn't matter if data is stored on a hard drive, internal memory (which is like SD cards, though a bit better), or DVD. It can't all be in ram at the same time.
Mobile apps developers have to be much craftier and efficient than desktop developers. They have been dealing with limitations since the start. The iphone and android are making things easier for them. Don't worry about the complex programs, they will always find a way.
I'm not sure I get your tone by quoting "your company". The company I work for has been around for 30 years. They must be doing something right.