The thing you're all forgetting is that compression isn't "free". It still requires resources to uncompress the data.
Also, when it comes to "just add another disc": adding a second disc, doesn't double your storage space. In order to run the game, the engine and textures have to have copies on every separate disc. Let's say you have a 20GB game on a Blu-Ray Disc with no problem. Let's say 5 GB of that is shared data like the engine, sound and texture files used by every area in the game. Too fit it on dual-layer DVD, you would have: Disc 1 (5GB Base + 4Gig other) (9 Gigs so far), Disc 2 (5GB Base + 4Gig other) (13 Gigs so far), Disc 3 (17 Gigs so far), and finally Disc 4 (20 Gigs with a gig to spare). Take a dual-layer Blu-Ray game, and suddenly you've got a half a dozen or more DVDs.
If games get to the point where the basic shared data is close to or passing 9GB; then it won't matter how many DVD's you add, the game won't fit. I doubt this happens in this generation, but it's possible it could near the end.
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