Yeah, that's the main problem with flash, the vita games average 1.5GB, with 4GB max, and physical size is a core requirement for portable gaming devices so it's worth the expense. They use flash because they have no other alternative. With the PS360 generation, games were 10GB (with some exceptions maxing out the bluray). With the PS4, games are already around 40GB and I wouldn't be surprised if we see multi-disc releases at some point. Next gen will probably need much more because it will be 4K.
If next gen comes out late, say in 2020, something like 200GB of flash would be way too expensive, depending if we believe market analysts predictions on nand price. If they gimp the max capacity to 50GB it could be possible. Even then, there are still major hurdles for mass replication of flash data, and it is still much more expensive than the 500GB discs on the bluray technology roadmap. (Archival discs)
Since this is a cyclic thread, I can save time by countering the upcoming mention of 3d nand.
http://www.digitaltrends.com/computing/3d-nand-cost-investment/
3D NAND will lead to bigger solid state drives, but it may not shave costs