I agree with him, actually. Games are about money. Upping the bar makes almost no sense until pretty far in the future, relatively speaking.
There will be one more generation, but it won't be for a while, and it'll only be an incremental improvement. After that, it'll take an electronics revolution -- and I'm not talking nanotech, either.
Computational power will only get greater at the cost of more money, for some time. That's contrary to the whole idea of a game console.







