I guess developers will have to wait till next generation to make truly spectacular looking games, you know, when its cost effective, within the means of reason and practical. Not forced into the fledgling HD market at top dollar as certain companies are trying to do now with their consoles.
While everyone is entitled to their opinion, I honestly have no sympathy for the plight of graphics whores and technophiles. Of what I've seen nothing the PS3 has done yet or promises to do, no matter how beautiful or stunning, could possibly ever justify the expenditure and direction Sony is trying to take gaming. HD is great, but its not worth sacrificing all else for. Blu-Ray is spiffy but it is not a necessity at this point in time and should not be treated as one.
If this spectacle of graphics is indeed as worthwhile to gaming as you claim it is I think you can at least do it the service of being patient and waiting another generation before it becomes realistic to implement.