The FPS (30Hz) is rock steady though! One of my pet peeves when doing DirectX/OpenGL development is that it's really hard to completely avoid frame drops, e.g. if the OS decides to schedule some other thread, or because the GPU driver decided to do something else than render your app. With hardware development, you can side step all of those problems. As a result, the Minecraft clone is guaranteed to not drop frames :).
This would save up RAM for other things (and be a fun exercice to get right).
Are there any FPGAs out there with an order of magnitude more memory you have considered?
While it would have been easier to use a larger/faster FPGA, part of the fun of such a low level project is to work within harsh constraints and see what can be done regardless :).