i swore by WRT54GL w/sd card mod for many many years (on dd-wrt, then tomato). jumped ship to an Asus RT-N16 recently cause i needed the wireless-N and gigabit switch. currently sporting the Toastman mod of tomato, Shibby mod is also good choice.
I suspect that the Ethernet switch is not part of the SoC, so it's a separate component that is already price-segmented. A consumer wireless router with 8+ Ethernet ports would probably not have significantly better margins than the existing models, but might need another round of FCC certification, and might also cannibalize sales of enterprise routers.
Also, I think most consumers who have a need for more than 4 computers to connect to their router via Ethernet probably don't want their entire network to have such an expensive single point of failure. I've had Ethernet ports on wireless routers die before. I like my switch separate from my router/AP separate from my modem.
I agree with you, the latest products were quite limited.
My brother bought one of their ADSL routers: the wireless range was limited (a lot less than my draytek and i think less than the old dlink we had), some features were crippled (usb port cannot be used for printer sharing but only for disk sharing, the disk should be fat and not ntfs, the sharing feature was basic) and wifi was continuosly freezing also with latest firmware 'til we searched on google and find some wifi parameter tuning hints on a forum