I don't even think 4 DVD's for a game is a problem really. We saw it with the PS1 with the FF games which spanned 3 and 4 discs, and it was never a problem. It becomes a problem when you have to cut things out/lower the quality of the game to make it fit on a reasonable number of discs. Off the top of my head I think the 360 version of FF13 contains 18.6GB of data over 3 discs, whilst the PS3 version has 38GB of data on 1 disc. That's half the size! All you need to do is look at the screenshots of the games and you can see the difference. All the previews have said the PS3 is by far the better version also.
I remember arguing with the likes of you and RedKaos a couple of years ago over the need for Blu-Ray, why I didn't mind paying extra and why ultimately it would be needed, but you laughed it off if I remember correctly and called me an idiot. Looks like now only 1 of those is true.

Definitely the compression of games is a major issue, but i also really can't be done with changing disks. As you say, games, visually and audibly are already starting to be better on the PS3, games such as 'Rage'.
I said i personally didn't need the blu-ray player for watching films, with DVD being more than adequate.
At the time HDDVD was still in existence, so i presumed that when it came to it, the xbox would run games from the external player.
also, out of interest do you know a bar/club in Preston called Lava?