Most distributions still use a "Live CD" format, actually a "Live DVD" nowadays (with a few hacks to make it also work as a USB pen drive image), for their installers, and that limits the installation image size (which also includes enough packages for an offline install of a desktop environment) to a bit more than 4GB (they fit into a common 8GB USB pen drive). So it being the "age of Terabyte HDDs" does not matter, for packages expected to be installed on a normal desktop system.