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Where the 360 crushed home computers was in mass storage

Well...sure, you could put bigger storage on a mainframe. It's just money, after all. But you could put a tape drive on a home computer. And bigger disks. And a card reader, for that matter. Where the 360 really crushed the home computer was in aggregate bandwidth, via the Channel architecture. An Apple 2 could just about keep up with a floppy and a display. A 360 could keep up with dozens to hundreds of tapes, disks, card readers, terminals, printers and other things all at the same time.

Large storage compared to memory meant a lot of focus on external memory algorithms

I would agree with that. I would just argue the real mainframe advantage is a whole-system one and not point to a single factor (memory size).




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