I have brought up the whole "carts > discs" things a few times, and would love to see them come back - say for the Wii II.
If carts get advanced enough, there are two major points I'm not sure have been covered here:
1/ A fast cart effectively "acts" a RAM (albiet R/O ram). This means you can get away with a console requiring MUCH less RAM in hardware - which means a big drop in dev costs.
2/ Not having a disc drive within a console is a major plus. Big improvement on form factor (smaller), power use (less spikes from motors), reliability (moving parts) and cost.
I still see the carts v discs argument as one of the main reasons the DS beat out the PSP.
Gesta Non Verba
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