To me, a generation is a construct whose meaningfulness depends on its intuivity. It's useful when it can be defined intuitively, but when it can't be it's useless and shouldn't even be tried to be defined. That is, with the current direction the industry is taking, the concept of a generation is becoming less and less meaningful.
The traditional generation thinking can be expanded a bit by talking about a console company's own generations, but it's becoming harder and harder to divide all consoles into generations. This is because the release times aren't so periodic anymore, and the consoles themselves seem to be taking different directions. And even the division into each console company's own generations could become problematic as the release cycles become shorter and each console iteration is closer to the one before it, including high compatibility with its predecessors.
So yeah, it's becoming a useless construct.
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