Yes, with games releases such as Gran Turismo 5, Uncharted 2 and God of War 3 I think this generation has already come a long way.
I do like to see games make deeper use of stereoscopic 3D and/or MLAA. Luckily soon upcoming games such as LittleBigPlanet 2, Motorstorm: Apocalypse, Killzone 3 and Infamous 2 show much technical promise.
However I am a tech enthusiast but not of the 'usual kind', I am also interested in fields of science. So for instance I take into account the limits of human perception when judging a game's technicals (includes graphics). The narrow minded 'tech enthusiast' may think the higher the resolution, the higher the framerate the better, that's not how I look at this. I find Crysis 1 a not that good looking game on max settings on my Windows 7 PC. Part of the problem may be art direction, art polish, acting performance, directing competences and such. And also achieving framerates higher than a human brain can process is not that relevant to me on a game per game basis, neither potentially higher resolution screens on tiny computer workdesk monitors compared to big ass living room HDTVs.
