Yeah I don't think this upcoming gen is going to blow the current gen's graphics out of the water. I definitely think there will be improvement, but the cost of hardware to get the cutting edge is just too much. I think in the first year of these new machines you will see slight upgrades over current gen, followed by better and better graphics as devs get more comfortable on the new hardware.
The comment that games were running at the same rate that they are on PS3 on PS4 dev kits isnt surprising. The dev that stated this probably just slapped whatever they were making onto PS4 hardware without optimizing anything, just to see if it ran. remember the early days of 360, even though the hardware was LEAGUES better than the previous gen, graphics were not even close to what you get today.
Next gen will TRULY be about being the center of the living room/entertainment center. I think you will see lots of other stuff aside from games as people move to consolidate their experience into fewer total devices.
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