No, because that would be a bit excessive. What they should have done is designed the game for the top, then scaled back. It's a lot easier to reduce than it is to add.
I agree, what I suggested was a bit too excessive. But the game SHOULD have, like you said, been developed for the top end machines, then scaled back for consoles.
But it still bugs me that things, specifically dialogue topics, are limited due to the space on the 360's discs (IE: more space giving more room for sound files). I want to have NPC's like, in Morrowind, who you could talk about a numerous amount of topics with, rather than just a couple things like Rumors and what not, where they are all voiced by the same couple of people.
I imagine a mandatory install would fix this (say all the sound files on a separate disc that you install onto your 360's HDD). But apparently M$ has some rule that games for the 360 can't have a mandatory installation, because of the people with no/extremely small HDD's.