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To say something people will probably misunderstand ...

I honestly have mixed feelings about the current generation of consoles graphical capabilities. While I don't see a need for dramatically more advanced effects in game, it would be really nice to see increased performance to reduce polygonalization and pixelation artifacts.

Hypothetically speaking, I don't think I would see a big need to get better graphics if you could double texture resolution and increase the number of polygons devoted to a particular model (in general a 50% to 100% increase should be enough). Certainly, the HD consoles don't produce photo-realistic graphics, but I don't really see the need for photo-realistic graphics.