*shrug*
Out of the two technology I still favor Blu-Ray because it has a better future then HD-DVD on a storage front. Also I mean of course the assets are going to get for an HD games. Your going from a what 640x480 picture to fill the screen to a 1920x1080 picture to fill the screen. I don't care who you are that takes more space. That being said companies are wary about going to two disc. It cost more to produce and since its a relatively specialized processes, compared to one dvd, it will surely cost a little more then just pressing 2 dvds. I think we'll see little things show up on games developed for the bigger medium from scratch because they'll never be that idea of needing to worry about space. Meaning you can do things like only lightly compress models and other assets, only compressed for read times of the drive. Though all this is a moot point until Blu-Ray Disc production increases making it cheaper.
Wrap Up: Publishers will pressure to keep it on one disc because of manufacturing costs. Now on the flip side of that 2 DVD's, with the extra labor, is probably still less expensive then a Blu-Ray disc but, that has the potential to rapidly drop.
Also on the ten-year thing I have two words one title: Neo-Geo. Its amazing what they did with that system.
Edit:
I found this
articleHere is the Relevant quote
Quote
Vrignaud believes that a single USD 599 SKU will be untenable. He predicts that Sony will sell the announced 80GB PS3 for USD 499, but will also release a scaled-down 40GB PS3 for USD 399. The smaller system would eliminate the memory card slots and integrated WiFi as well as the backwards compatibility hardware.
What do you guys think of this idea? I mean seriously do you think that people would go for the PSGimped at $400? Compared to the 360 Core you don't really need to buy anything to use it as a full PS3. You might have to string some network cable or buy a bridge. Besides that everything the 80 can do except wireless and media slots which isn't that big of a deal. (Personally would have rather had built in PS2 Memory Card slots on the bigger model.)