How does how Blu-Ray benefit video games?

[Raven]

So I saw this quote on EGM from the Oblivion developer:

"Drive speed matters more to me [than capacity], and Blu-ray is slower", with EGM revealing that "the PS3 Oblivion team compensated for the slower drive by duplicating data across the Blu-ray disc, making it faster to find and load."

That got me to really think... will Blu-Ray really take video gaming to the next level? I mean, Blu-Ray was specifically developed for movies not video games. You need the extra storage space for the high resolution video in 1080p. You don't need Blu-Ray to achieve 1080p games. I don't think any PS3 game has fully utilized a Blu-Ray disc yet. I've read that some games use up the whole disc, but it's because the developers had to put the same files all over the disc to compensate for the slowness of the Blu-Ray laser. Some games use the HD to copy files to improve load times.

What's the point of having a 25 gb disc when the drive is so slow? PS3's Blu-Ray laser reads 2X at 9MB/Second. Xbox 360's 12X DVD laser reads 16MB/Second. Thats crazy how Blu-Ray hold 3 times more data than DVD, but almost twice as slow!!! How is that better for gaming?

Does Blu-Ray really add to video games? Or does it only drive up the cost of the PS3 for people who play video games so that Sony can sell more Blu-Ray DVD movies? I really believe that if Sony really cared about their video game fanbase, they'd use DVD format and lower the cost of the PS3 to the same as Xbox 360 (or cheaper) and they'll definately win the video game battle again.