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There's only so much you can do with patches. I guess expansion packs are an option though (maps, guns, large updates, etc.).

I guess the main reason for new games are graphical/physics improvements as well as the new single player campaigns and what not. Even though CoD4 is still playable today, MW2 is a huge improvement graphically and a lot more can go on at once without the framerate dropping at all. 

That said, I would love to see maybe a 2-3 year cycle between CoD games, with the gap closed off with expansions and constant updates. That could be a win-win situation. The publisher makes lots of money off of expansions/DLC and we get more content without dishing out $60 for a new game each year that's barely an improvement.