While graphics will get better, the leap next time will not be as big - due to the lessons learned this time around. As several others have already stated, the focus should be on tweaking hardware enough that 1080p is possible on most every game.
Nintendo will be the only company to show a major boost this time around. The other two will be constrained because the hardware needed to show a significant boost does not even exist yet, and certainly will not inexpensive enough for the next platform.
As for these graphics on their own, I will be plenty satisfied with them. I do disagree with those who say that PS1 graphics are enough - those games look horrid now. It's not about merely the number of polygons, because I don't mind the graphics on Wii Sports. It's more about the filtering and processing of those polygons. Honestly, in terms of overall beauty, the PS1 was a step down from the sprite based graphics of the previous generation. The PS2 simply brought the power needed to get that amount of aesthetic appeal BACK to videogames. This generation is the first generation to actually ADVANCE graphics since we moved to 3D.
