I do not think the initial decision-making process was "hey, screw working-class people... let's have a 120GB install size on PC." My best recollection is that

I do not think the initial decision-making process was "hey, screw working-class people... let's have a 120GB install size on PC." My best recollection is that the PC install size was a lot more reasonable at launch. It just crept up over time as they added more content over the last ~2 years. Should they have addressed this problem sooner? Yes.