I'm sure some devs will use more space for game content than 7gigs (especially if it's there) but to what degree and to what REAL effect? Yea, Sony will undoubtedly do it a few times and trumpet "bigger games" as a feature over the competition, but does it make the game better? more fun? prettier? than the X360 version?
That is doubtful; as attested to by the simplicity of a small game like Rockstar's Table tennis with it's simple, fun intuitive gameplay, having gamers everywhere, scrambling to play it.