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Gamerace said:
I think the fact that the Wii is going to own over 50% of the market this gen with vastly inferior graphics (there I said it) proves that graphics have already hit the point of deminishing returns.

Assassins Creed was a good example of what just can't be accomplished on Wii. I think that's what he was getting at. When will graphics reach the point where there's no room/need/desire for improvement.

You can't say we're there already. Casuals never cared in the first place, but I doubt any serious gamer would buy a Wii 2 in 2012 without some kind of upgrade.