Here is the thing - the game industry is focused too much on consoles in order for advances like this and others (procedural sandboxes and artificial intelligence come to mind) to come to the forefront.
Consoles are just limited in their ability to deliver more processing power, move data around faster and store data and these limitations don't appear to be going away anytime soon if the ever increasing console lifecycle is a benchmark.
Instead, the industry focuses on production values like story, acting, visuals, because these are things that can reasonably be improved within the limitations of the device.
This is why you hear game studio heads or publishers saying outrageously stupid things like "We don't really need better consoles" and claiming to have reached the pinnacle of what they need to deliver - the benchmark they are using is one purely around production values.
As an older gamer and a computer scientist, I find it really frustrating to see how the game industry is (d)evolving. When the PC was the primary vehicle for home gaming, the games themselves improved much more evenly across many different areas, not just graphics and production. Increases in things like storage size, or processing speed, or more available ram, meant that in the competition between game developers, there were always new areas to explore for improvement. That just doesn't exist any more.
For me, I sit back here at 2011 and wonder why we don't have procedurally generated sandbox games like GTA or Saints Row, or RDR, where the environment is different every time. Or games where each actor in your sandbox has it's own AI thread that simulates a real life person, with jobs, meeting people, getting married, having kids, going insane and shooting up a mcdonalds, whatever.
This stuff is all entirely possible. It's not like the knowledge of how to do this is beyond us. It's not even that it's incredibly time consuming to do (just look at what the guy who develops Dwarf Fortress has been able to do with that game). It's just that the focus is not there because the primary delivery platforms (consoles) were built at a time around the assumption that the only thing that really mattered was production values.
I know it may sound like "I hate consoles" here, but that's not really it. I'm all in favor of people being able to game cheaply. I just hate the fact that the development philosophy for the entire games industry is so intrinsicly bound to a stagnent piece of hardware. I honestly feel like it's been killing innovation in the industry as a whole (When was the last time a new "genre" for gaming was invented? What was the last major gameplay element to be added to a genre like the FPS - chest high walls??)
Ultimately if things continue like this, the only thing that will seperate the vast majority of commercial games will be the size of their marketing budget and when that happens then gaming will be just as shithouse as movies and television are.
It's so bloody depressing to think about....