Yoshida said in a previous interview that the graphics wont get better.

Link? I sure hope he's lying. If this is true then critics will tear the game apart. 

Did people really care about the graphics of this game when it was shown first during e3 2009. I am pretty sure that the aesthetics of the game's art style was what pique my interest on this game.  And the unusual team up for a collossal monster/young boy was the one that caught everyone's attention too.

It coukd be better but people did praise Ico yet it started out as a PS1 planned game.

I'm sure this was already in the pipeline when they announced the 2016 launch window. Whats possibly happened is that the game content is mostly done and the next 12-16months, is to do with full implementing the new engine. 

The new engine will likely effect all portions of the games performance wise. Good news because as pretty as the E3 demo was it, I expected more from the PS4's hardware.

No, people didn't care about graphics back in 09, but that was six years ago. If it looks like the game made NO progress in all that time, then critics will take note of that. Ico was a really early PS2 game. The standards weren't as high. 

Just as it's stated here:

"Apparently the demo that was seen at E3 2015 was already completed on the PS3 by July 2010, but once they shifted their focus to PS4, they ported the demo to the new hardware and showed it at E3 2015."

Ueda and co shifted their focus to PS4 in 2012, so that's when porting the game over to PS4.
If they started working on the PS4 version of the game in 2012, then they began developing the engine then, would probably require the engine before assets and their code could be moved over or tweaked to run on PS4.

Gen Design and SCEJ have had 3 years, nearly 4 years come 2016, considering how well the game's already and the fact that it's already been seen by journalists behind closed doors, played through different section and in slightly different ways it's not going to be like before and I highly doubt this will be delayed into 2017, otherwise Yoshida and the other bosses at Sony probably wouldn't have bothered showing it.

As for the graphics side of thing, it's clearly a huge improvement over the PS3 version, just from an visual point of view, the fact it's already running natively, with nothing sped up on the frame rate front and no extra tech specced up to make it look right means we're seeing the true PS4 version of the game.
Comparing Gamersyde footage to YouTube the difference is huge, the extra details are easy to spot, the events we're seeing aren't scripted as they were in 2010/2011, it's all dynamically calculated physics, tonnes of particle effects, much higher res textures, more geometry, those feathers on Trico react to the wind and don't just move based on some predetermined code.

We'll see what happens, but the fact Ueda is even talking to the media should be a good sign or that they're able to release such information.
If we don't see any new stuff or hear any new details before the end of this year maybe have a little concern then, but I don't think that's likely to happen.

Most likely we'll get a release date by the end of the year, same goes for Horizon: Zero Dawn, probably Dreams and if Morpheus gets a release date and other details then RIGS will probably get one too.
IMO all of the above will be released by June next year, along with Street Fighter 5, Uncharted 4 and Ratchet & Clank.

I agree that it's very unlikely that TLG gets pushed out of 2016, but I think some of your other predictions are a bit off. I expect Horizon to be a late 2016 game simply because of how massive it appears to be and because they haven't shown anything else that's coming for the holidays next year, and I actually think Morpheus will come IN June of next year, along with RIGS. I am expecting Dreams early next year though, and TLG to come out possibly July or August.

Horizon makes sense as a March release, because Guerrilla's last 2 games both released 9 months after they were announced, Bloodborne (another new IP) came the same amount of time after being announced, even though no gameplay was shown at E3 2014. The behind closed doors E3 gameplay was running much worse than Horizon and that's another big game that still came out 9 months after it was announced. Guerrilla have been a bit more vocal than From Software were, they're even showing up at Gamescom or releasing new info then.

Horizon's been in development since 2010 (GG talked about making a new IP in August of that year).

I think Uncharted 4 will be brough forward to release in Feb, mainly because it's looking much more complete right now.

I think TLG will come either Jan or May, it all depends on how Sony shuffles their releases out and what they feel needs the most time, but I think we'll be looking at a very packed Winter/Spring for them.

Dreams could be Jan, pushing TLG to May.

Kaz Yamauchi has already said that GT7 will be coming before 2017, so that's most likely Fall, December or November.

Bend have their game to unveil, perhaps at PSX, Quantic Dream are rumored to be showing at Paris Games Week. I'm pretty sure Santa Monica stated that they're going to have a heavy presence at PSX as well this year, which could mean they're unveiling God of War, which could end up being a Fall release next year.

Sly Cooper has a new movie coming next year, though I haven't seen any rumors of a game, but still it would make sense if Sony wanted that for the Summer.

SCEJ are rumored to be working on Gravity Rush for PS4 and they also apparently have a huge Final Fantasy style JRPG in development, some of this stuff may end up being early 2017 releases, there's also Sucker Punch who are known to be working on a new title (not sly cooper, but there's no confirmation on whether it's a new Infamous or a new IP).

Guerrilla Cambridge were even hiring for staff to work on an established Sony IP, they're obviously making RIGS, but they could be handling Killzone 4 or even a new Resistance game.

There's also a rumored remake of PS All Stars in the works.

Sony has plenty of other stuff here that could be Fall games or Summer releases, with quite a few left over that gets pushed into 2017.

TLG, Horizon and Dreams (even QD's new IP) would be games that have had the most development time, over 4 years, with at least 3+ years of solid PS4 development time, plenty time to be ready for the 1st half of 2016.

Ihope they really revamp all the graphic, into PS4 engine. But i guarantee it will not take a lot of time because PS4 architecture is much more easy to learn then PS3, and also this games almost finish, so my guess the games will be coming on 2017 or 2018.

The standards were never high for Japanese games when we think of graphics. It's all about aesthetics.

Bloodborne is an example of that. Japan has always been about style to hide the graphical flaws.,(Unless you're Kojima)