I would think producing 50 gb+ flash for games would be prohibitively expensive compared to optical discs. Especially as they can continue to add layers to Blu-ray to add more storage space. As long as the disc read speeds are faster than the PS3's (2x) I think it's still an advantage.
On a different note I wish the PS3 would adopt the 360's way of installing the entire game to the hard drive. I can't think that either Sony or Microsoft will stick an SSD in their next generation console but having a 500 gb hard drive shouldn't be too costly.
On a different note I wish the PS3 would adopt the 360's way of installing the entire game to the hard drive. I can't think that either Sony or Microsoft will stick an SSD in their next generation console but having a 500 gb hard drive shouldn't be too costly.