There are actually two black boxes, one of which records every detail of the flight (what position every switch is in, etc etc). The voice recorder is limited to thirty minutes because if there is a declared emergency, that plane is likely to be on the ground in thirty minutes or less, one way or another. Communications with air traffic controllers are independently recorded on the ground but assuming you are referring to the infamous overflight they were not in communication with the ground so there are no recordings to study.
Where do you work, by the way? In a bank, let's say. Do you really want the bank to record every word of every moment of every day, even in the restrooms, and give those recordings to the Federal Reserve System, your state banking regulators, the F.B.I., and the local police just because some nut-job came in to rob the place?
The thirty minute limit is influenced more by labor unions and privacy issues than technology.
Edit: It isn't a matter of erasing all but thirty minutes. It is an endless loop device with thirty minutes of capacity, so it is constantly recording over itself. And the video cameras in a bank or convenience store generally do not record sound because they cover too large of an area. The question was not "How much time should be recorded?" but "Why was it only thirty minutes." When y'all become head of the FAA, maybe you can get it changed.