The inflection point for diminishing returns appears to be the PS3/360 generation

[HylianSwordsman]

SvennoJ said:

8K is targeted for the end of consumer resolution which is near indistinguishable from real life. It will be most useful for VR anyway.
This gen is struggling with a jump from 720p to 1080p, 4k 60fps is at least another whole generation away.

Anyway yes the end of output resolution is in sight. Draw distance, lighting, object detail still has a long way to go. There is always consumer demand for better looking graphics. People can still tell the diference in movies and obviously care considering the success of Gravity, which can be summed up as grieving mother rediscovers will to live after facing certain death.

Well you sound like you're a lot more familiar with this. We do have more generations to come of improvements, but I think we'll soon start caring about new sorts of improvements, not just graphical ones. I haven't heard of Gravity, I'll have to check it out.