There was an update posted on xda-dev... now you can run it from your storage card, and at least some data is now persistent, such as any contacts or favorites you add.
cons however:
it seems much slower, the page transistions are not as smooth and quick, and the loading of each app you run takes much longer. I guess this is to be expected, as sd card is much slower than running it from a ram disc.
Also, SDHC, so far as people who tried it are able to tell, is not supported.
http://forum.xda-developers.com/show...382265&page=54