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I think it's similar to how music CD's use to come in those long carboard boxes. Lots of air for a little case. Eventually those went away. PC games are starting to do the same but like Reavar said, some games have manuals to thick for the smaller boxes. I for one really like the new small boxes. Up until them I would through all the PC game boxes away simply because I use to buy too many games to justify keeping the boxes.
I just snapped this picture with my web cam. (My digital has dead batteries)
You can get an idea of their size by scaling it next to the polaroid sitting to the right.
MUCH smaller then they use to be.
But like said earlier, console games are easier to handle and store.
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