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Re: OP...

Yes.

I think the curve will start to flatten out in terms of graphics improvements, but there's still a ways to go in terms of visual rendering. I don't think character animation is going to get much better than it is right now, though -- it will always look weird and lame, because to put a real sense of weight and inertia into the player character would seriously compromise control. That may be the point past which graphics improvements stop mattering, because it's never going to make sense for a videogame "performance" to look and behave like a movie actor -- that's not what games are about. Cutscenes are not games.