I can agree with what you are saying, but will that make sense financially? Most people are fine with the graphics of CoD and Battlefield (we can deduce that from the sales), they already have the console and they would just have to pay $60 for those games. So why would devs and publishers invest in a big franchise for a console with limited install base? Like I said before ignoring a 140m install base will not be easy for 3rd party developers (especially the big games with a high budget) even with moneyhat from MS or Sony.
I can't see Activision risking a 10m+ sales of game for what's most likely going to be a lot lower than that.
I'm fine with Activision and EA releasing their games on both new and current gen consoles. They should just either develop them on next gen consoles and port them to last gen ones or use the PC version to port it to next gen consoles.
Increasing the resolution, framerate and adding more AA etc. doesn't cost any money.
We'd be then able to see which versions take off and which don't.