You know what? I like advertising in video games.
It really added a lot to Crazy Taxi when somebody asked you take them to The Gap, or Burger King, or Pizza Hut, etc.
How cool would it be in a GTA game to see billboards and flyers for actual products? A sports game with the signboards that are actually present in real life?
Hell, there already is a shitload (other than the aforementioned Crazy Taxi). ABCSports and ESPN have a ton of advertising in the Madden and ESPN 2k series.
It would be nice if it reduced to price of games, but let's be realistic. People have already shown a willingness to pay a $49.95 starting price for new games, so that's most likely what it will stay at.