Actually Vault Space no longer resides just on the consoles (if it ever did in the first place). It resides on Bungie's servers. To see this for yourself just log out of Destiny on your console, fire up the Bungie App (or Ishtar) and move some items between any two of your characters and/or the Vault. Go ahead, this post will wait. [spoiler]Works, right? You should not be able to do this remotely if your Vault was on just the console which Bungie is not connected to[/spoiler] For this same reason I do not see a good reason as to why Bungie can not create a special Archive vault where we can store less used items which have significance to us. This Vault should be larger than our current Vault and allow us to check items in and out of it that do not plan on using often (perhaps through a Kiosk at the Tower). This would allow us to "declutter" our working vault to allow us to find Weapons/Armor we want to use more quickly. Better sorting tools (such as by light level) would also be appreciated in both vaults.

Basically the talk about legacy consoles stopping valut expansion was most probably bullshit.