I really don't get why people are getting upset about this after seeing what first-party teams did with the PS4 back in February. They all thought it would just be 4GB and still blew the current-gen out of the water visually. It's just stupid.
On VxG: the whole thing was a mess. It was just a mess. The players there said they had a lot of fun there, though, and many even extended their stay just to enjoy the island. So the VxG team probably got what they wanted in terms of tourist attraction. Still not a good look from a gaming standpoint, though.