[Daxter King]

If we can trust wikipedia on this one, the size cap is at 2GB because of technology constraints, meaning Stewart knows what he's talking about and OANST doesn't.
http://en.wikipedia.org/wiki/Xbox_Live_Arcade#Xbox_360

I honestly don't understand how there can be a technical restriction where only games up to 2GB can be on the Arcade, when there are 6 GB games next to them in the Games On Demand section.