I had thought you could install the rootfs package to the hd and chroot..or something like. I haven't tried it.
I would like to see a different partitioning scheme, though. /home /var and /tmp really ought to be on the hd, or at least the option should exist. Maybe do something lile a /boot and a pim data or something on the flash? A ton o the read only system stuff? I'm Not at all sure how that would would be done, and clealry I haven't thought too much about it, but the idea is interesting.