Flash memory is just way to expensive. Even if you consider the fact that 6.8 GB is all most games need at this point (usually games that require more than 6.8 GB these days have excessive cinematics. If game developers weren't obsessed with creating hollywood blockbusters or J-soap operas, we wouldn't need multiple DL DVD discs. Call me an old fart but I'm not impressed by "cinematic experiences" anymore like I was when I was a teenager and the whole FF7 and MGS thing felt new to me. I just want to play the freakin' game.), by the next Gen that won't be enough. So even 8 GB flash memory cards wouldn't be enough to house games and 8 GB flash memory is pretty darn expensive. A lot cheaper OEM than buying from a store but still very cost prohibitive I'm sure. Game prices would have to go up.
Now for stuff like DS, flash memory works for them but their capacity is tiny. Only 256 MB max. Now seeing that the DS has been out since 2004, the Next Gen DS flash cards will have a good deal more capacity. But I bet it won't be all that much. Maybe the cards will hold like 1 GB this time. But I think it'll be a long time before you could feasibly release games on a 8 GB flash card at a reasonable price to the publishers for home console releases. And by Next Gen, 8 GB won't be enough anyway I'm sure since games will become more graphically intensive and thus require more capacity (even without the cinematics).
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