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Many manufacturers are doing just that! You can buy microcontrollers now that contain flash memory, ram, a/d and d/a conversion, dsp, even a fpu right on chip! The limitation is at some point the chip becomes so specialized that it has limited application. That means it will not sell in very large quantities. The chip makers have to balance these factors when deciding how much stuff to put on a microcontroller. Also at issue are interconnects inside the chip as well as package pinout. Some chips now have so many pins on such a very fine pitch that soldering/assembly is becoming more and more difficult. Dissipation of heat is also a major factor as the microcontroller increases in complexity.

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