Is DVD not providing the storage for Blue Dragon?
Moreover why the focus on providing a seamless experience? What are you going to play through the game without pause? So if this game was on PS3 you'd go through 40 hours of play time without interruption? Thank god for BluRay then (and nuts to your bladder)
P.S: I mean, I agree its "nicer" to have the game on a single disc, but its such a small issue to get your lazy ass off the couch and swap discs that I don't see it as an issue even worth bringing up as far as it relates to the consumer. For the developer it poses more of an issue, because you have to intelligently split up/duplicate assets so that you will only realistically have to swap discs a maximum of 3x (2 + disc1). They should be able to pull it off with 2 swaps.
BTW, I didn't see anyone complaining that RE4 came on 2 discs. In fact, I saw a whole lot of praise about what an amazing game that was. I mean sure, it bothered the hell out of me that 15 hours into the game I had to change the disc, but it seemed to be alright otherwise