Everything starts high, the price will lower eventually, especially since around the same time HD-DVD will be coming out [32GB Maximum], Not as good as blu-ray but still some pretty heavy competition. Im not sure where you heard the bit about the burner though, how do you know it's going to be writeable?
Blu-Ray is going to go far beyond 25GB. HD-DVD Alone sets it's maximum at 32GB. Blu-Ray has already presented discs as large as 100GB and figures that they can go all the way to 500GB on quad layers. I also heard (but am not sure if it's true or not) that they may be able to do 8x Layers. If this happened they would be able to produce discs that are 1TB each.
The use for such discs? I have no idea. They would never be cheap, they would render hard drives practically useless and they would take forever to write to. There is basically no way any media will EVER be good enough quality to fill one of these monsters and games are definately out of the question too.
I have no problem with this, In fact, I do hope they come out. I have high hopes for HD-DVD, I think it is going to be something useful since it's not rediculous in size. The size is huge but a standard DVD 9 takes up 8.5GB on single side dual layer. I think they could find a use for 32GB but there is no way they will ever need 100GB for a single game or movie!!! If they do release it, it will also lower the price on CD-Rs, DVD-Rs and DVD-Rs Dual Layer which is also, fine by me.