As previously stated by Willits that Rage's content has been reduced due to limitations regarding the disk space for the 360, he now clarifies the situation. Here's what he says:

However, following all the online reaction to the story Tim released a statement to Shacknews in which he clarified his statements, saying, "There was NO CONTENT removed from RAGE because of the 360--NONE AT ALL," before adding, "We feel the 360 is a great platform and will provide a fantastic Rage experience."

You could argue that first point isn't entirely true, as id has said on more than one occasion that the Xbox 360 version won't look as good as the PC/PS3 iteration due to DVD size constraints, but what did he mean by "Rage's story has been altered" because of the Xbox 360 in his discussion earlier today, then?

"During my talk today I mentioned that we originally wanted to have around 5 or 6 smaller wasteland environments but later decided instead to have 2 larger wastelands," he explained. "Mostly because we were going to be shipping on two DVDs for the 360 and felt that it would play better with one large wasteland on each disc so there would be no loading between wastelands."

You can find the news here.