For live play the system can be setup so that all the sounds load at boot up (Just like current keyboards) so that there is no lag when changing sounds.
I'm not sure, I guess it would take much too long to load it at boot up, it is probably not a few hundred Megabytes (which took the Korg M3 already 1 minute to load), but a lot of GB. Wouldn't one need a "data streaming" solution like the Kronos or Kurzweil Forte has? I don't think it would be easy for a keyboard to handle this tons of data without latencies.
Kontakt like most VSTs uses disk streaming so only a part of the sounds need to be loaded. (If you look bottom left in the demo you will see the total sample size but if you look up towards the top right, you will see only a small amount needs to be loaded into ram.
Wersi OAS 7 instruments have had the capability to load these types of VST for 10 years without extended loading times. (Particularly if you use a SSD)
Korg arrangers have always been slow loading, for example the Wersi Pegasus Wing has to run the BIOS checks, Load the Win 7 operating system and then load the OAS program and sounds + the VB3 VST, yet it is still operational quicker than a PA900.
Bill