I can't conceivably see the next gen relying exclusively on these because even if the prices tumble, they won't cost the next-to-nothing to make that DVDs do. However, I can absolutely see the next versions of consoles supporting games that come on them. Benefits I see include:
1) Using them for larger games. When these flash drives are holding 200+gb, games that could eventually take even more than 1 blu-ray may become more viable on these.
2) Using them for anthologies. 1 of these could include all of a small developers products from an era. Or all of a franchise's games. While a single disc is more cost effective for the foreseeable future, the chance to get 12 games on 1 flash drive(for say, the price of 2 games) may be very appealing.
3) Stay seated! It's easy to give a console a couple more USB slots. How handy would it be in the next generation to leave your favorite multiplayer game plugged in all the time? I'm playing Mass Effect 3, when a friend of mine logs on and invites me to a game of Halo:5. No need to get up, it's already in another USB slot, I'm good to go.
4) Data stored on console AND disk. I have my saved games at home, and if I bring it to a friends, I not only have the saves, but it can reupdate my console at home when I get there. Keeping these synched would give so much flexibility for far less effort than memory cards ever were.
5) DLC - Download 2gb of extra maps and levels? Stores it on the disc! Bring it to a friend's house, and it's all there. This also gives a great motivator for episodic content. Release a game with massive amounts of DLC coming knowing that your users will definately have the space to DL it. The console would also be naturally prepared for someone to DL games right to their own flash card. This would reduce the need for big HDDs, as well as allow users to purchase DLed games that can still be brought to a friend's house.
6) Space - it would take only a tiny space to store an entire games collection. Heck, a console could even have a little game storage area right on it for flash disks. Either way, your entire games collection could practically fit into your hand.







