XP 32bit can use more than that, though. But there is no need, yet. As I said, there are games, that can use more than 1.5GB of RAM, but none see the need. Resolutions won't rise much anymore, as humans simply won't be able to see any difference... textures will reach the nyquist frequency before long... there'll be no need to raise texture resolution anymore, as there's no visual difference in doing so. And several games already have "perfect" textures, too.
I guess, the need rather goes to faster RAM, than bigger. 2 to 4GB will be more than enough, next generation, to server all needs. But beyond that, there'll be a need to address the other things... more and higher quality models on screen without heavy LOD, world physics, nothing baked, realtime GI... all those things won't need much RAM, at least compared to textures, unless you ramp up your GTA4 with several hundreds of car types creating traffic jams and crashing into buildings, destroying them and their car along with it, simultaneously.
The way PS2 and to a degree the 360 handle it, are good. A big pool of cheap general purpose RAM plus expensive additional fast RAM for other stuff. I am still quite in love how PS2 handled framebuffer operations like it did... made for some cool surreal games.
I don't see how windows xp can use more than that , even with the switch your still limited to 3.5gigs of ram.
As for needing more ram , people will allways want more textures and for everything to look better. The more unique textures you can use in a frame the better the game will look.
Then there is the added benfit of dumping the whole game into ram once it becomes cheap enough.
You can fit all of crysis into 16 gigs of ram and have 6 gigs or so left for other tasks. You'd get instant loading of the game which would make many gamers very happy.
As for ram speed and capacity , it seems like every two micron drops new dimm sizes become the norm. Right now 2gig dimms are the sweet spot and have been for at least 2 micron drops. With 42nm it seems like 4gig dimms will be the sweet spot in pricing , 1 gig dimms will most likely go the way of the doodoo . When we hit 22nm we may see 8gig dimms become the norm. As ram becomes cheaper more and more people will buy larger quanitys of ram. As the average skews towards 8 gigs instead of 4 you will see games and other applications grow to fill that extra ram. It wasn't long ago (with the launch of 7) that 8 gigs of ram was expensive. Now you can get it for less than a $100 even without sales