Equally flawed as compared to what?
Flash memory has been used for years in security camera setups and the cards haven't worn out. I'd be willing to wager that this unit will become obsolete (by an official transition to Next Gen) before the cards wear out. The flaw is that the medium is just too expensive and will require too-frequent off-loading. The other downside is that if you're using the Stream+ to view digital camera content, you'll have to use some sort of adapter to read the camera's flash card.
Most standalone OTA DVRs that aren't TiVos probably don't implement buffering. We don't know enough about the Stream+ to understand if this is an issue.
I think I posted the adapter:
Saiko Systems Ltd. - SD to MicroSD Converter