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For some reason setting rootDiskOnly causes strange error 
messages to appear in the installer, and you have to switch disks 
back and forth to make installation possible. And people with only 
one disk don't even have this option.

The problem is probably that the packages created by our 
buildpkg.py module aren't fully adhering to the (unwritten) 
standard. For now the workaround is to allow non-system-disk 
installs, but warn people in the welcome message that this doesn't 
work. For the future we should either fix buildpkg or replace it 
with a module that uses OSA to talk to the Apple Package Maker 
tool.