From my point of view, next generation graphics can and cannot be everything to what gaming should be. For instance, six years ago when I use to do alot of pc gaming, my reasoning for greater graphics was not for how realistic objects looked like. Instead my reasoning for greater graphics was because I wanted more fps and better movement for better gameplay. However, there haves to be a point where graphics peak, and gaming alone cannot rely on just its graphics. Especially since the purpose of creating gaming consoles is to have fun and/or be competative. Personally I think the quality of graphics is almost at its peak where developers of gaming consoles have to be more creative, and add another dimension to gameplay.
Side Note:
The xbox360 and PS3 maybe very powerful machines, but I see no creativity and very little difference compaired to its previous gen. Personally, I rather build my own computer with incredible graphics, sound, processing power, and etc... than to buy a PS3 and xbox360. As for the blueray/hd-dvd I rather buy a professional blueray/hd-dvd theatre system than messing with a mediocre gaming system.
