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Systems are only as good as their best developers, and there are always new ways of doing things that come to the fore. I dont doubt developers today could get a lot more out of the PS1 now than the best developers at the time were doing.

I remember once a company wrote ray tracing algorithms for graphic rendering that cut down the number of calculations by something like a factor of 25 without compromising the graphics at all.

In other words, systems probably never reach the full theoretical potential, but in the lifecycle of the system it is certainly very easy to 'max out' the system, probably the first thing the devs do when they get their hands on it, otherwise they wouldnt have a starting point.