There are PC games with Gamecube graphics that are still critically acclaimed so I suspect graphical improvements are nearing their appex. There may be a few games that raise the bar but for the most part, the games will look like slightly better versions of current games. AI should improve, as well as physics.
Every console should launch with an improved variation of the Wii-Remote/Kinect since motion controls have come a long way since this gen and most people seem to enjoy them when they're done right. Give every console the ability to play with motion controls, right out of the box, and there should be better support and more innovation. Voice control and gesture controls are already being discussed in the world of televisions and video games tend to pave the way in things like that. I expect at least one console to have such a feature already built into the box.
I saw a girl playing a crude soccer game in the mall a few weeks ago. It was a projection of a soccer field onto the floor. She kicked the ball that wasn't there. Of course, it's gimmicky but it's just the sort of thing that the media goes ga-ga over. Potential for a console add-on, right there. Then the Kinect owners will be able to say, "Oh, that is SO casual!" as they play their hardcore Kinectimals 2/Pokemon games (Pokemon should be released for Kinect, btw! It would be awesome!!).
I'm a console gamer by nature but I hope the days of individual boxes are coming to an end. I wouldn't mind if they copied the PC market where games were at least playable on every console and different bells and whistles determine which console people buy (Blu Ray, Wi Fi, HDD Space, peripherals) with upgrading being quick and painless (if more expensive).
I would also like to see custom displays like the 3DS adopted to the next gen of consoles. Right now, I'm posting on a laptop that's plugged into my HDTV. All I have to do is unplug the VGA cable and I've got a laptop with its own screen. Plug it up and I've got a huge LED TV to play with. Imagine if the laptop had a "3DS Style" display and allowed for 3D graphics that we all thought the 3DS would provide. At the same time, it could connect to a TV with a cable and to the net with Wi Fi. It's how my laptop is set up right now (without the 3D, of course) and I must admit that it is pretty sweet!
Throw in your extra social media content, improved integration, the ability to access your console and content to some degree via cell phone/pda, and bring back R.O.B. the Video Robot and you have my vision of the future. Of course, I'm high on paint fumes right now.......
