The modern need for patches and DLC makes that impossible now, in addition to the other reasons. But I think it would still be possible to greatly improve load times with a bit of optimisation - it's just not commercially important. Maybe if the console QA system imposed maximum load times it would be different - but then you'd see compromises made elsewhere, such as in level size.
(I play Cities:Skylines, where one of the more popular mods is simply called "Don't Crash", which lazy-loads other mod data to improve performance and reliability)
In practice, there have been a few games that have had patches released -- in almost all modern games a tiny fraction of the game is code, which can be easily replaced, leaving all the art and music which (hopefully) don't need as much patching.
That being said there are also many beautiful games that are amazingly fun, and the graphics do add to the experience, but they're more like the icing on the cake. That's not quite the metaphor I'm groping for, but you get the idea: the gameplay is a fundamental that has to be right, and then the graphics can really add something; without the gameplay the experience is always destined to be flat.
A lot of work goes into optimizing titles on consoles... it wouldn't make sense to skimp on such an important part of UX.
I miss the days of the PC RIP, where every byte counted.
There are plenty of high-speed decompressors that could possibly be adapted to PCM data, though, I'm sure RAD would sell you one.
Flash memory is still about a magnitude cheaper than RAM.
That's kind of what happens now (loading screens), but the problem is that console hardware is designed to barely pull off and play acceptable games and no more. From what I remember, the Xbox 360 was originally designed with 256 MB of RAM, but got bumped to 512. Games up until a few years ago had to deal with that. Many games go through many build cycles of simply optimizing RAM usage. When you have more demands on RAM during gameplay, there isn't any left over to load future levels. Add in that many games today are open world, and you don't know where the player is going to be, it's not worth it. Even PC exclusive games don't have this feature.
I imagine with some filesystem trickery you could even do it without the game even knowing, it just magically gets everything it asks for virtually instantly.
Console hardware is almost always sold at a loss. No company would build a console full of RAM (no matter how cheap it is) with almost no load times. Most people (having acclimated to loading screens) would rather buy the cheaper "good enough" alternative.
They seem to care about loading times....
[1] c.f. http://www.newegg.com/Product/Product.aspx?Item=N82E16820147... (I recently installed it in my desktop computer; my X99 motherboard had a slot for it.)
Except the modern console generation doesn't have dedicated GPU RAM. They are using AMD APU's that unify System/GPU ram.
Saying one is geared to graphics is just marketing.
GDDR5 trades latency for thoughtput
XboxONE DDR3: 68GB/s CAS 7
PS4: GDDR5: 127GB/s CAS 15
The reason GDDR is normally used in GPU's is the workloads are more predictive, you are doing the same calculation thousands of times, just iterating across a buffer. This is why SIMD/Cache prefetching shine in GPU's. It makes memory latency not as important.
http://www.newegg.com/Product/Product.aspx?Item=N82E16814132...