Well this is interesting. It may make financial sense for small regions of the Commonwealth, but I think this will really spoil the feel of the games and perhaps even dilute the legacy effect:
http://www.bbc.co.uk/news/uk-wales-39881638
That said, it's also nonsence that host cities host all of the events. Quite often, in both the Commonwealth and Olympic games, some events are held elsewhere. At recently as the Glasgow Game I believe that the diving was held in Edinburgh.