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Yes and no.

For most franchises, I think I'm at a point now where I'm more-than-happy with the current graphics. I've played Uncharted 1 & Heavenly Sword for the first time recently, and for both of them there were plenty of moments where I thought "this is just stunning". Sure, I realise they could still be improved, but for me they just absolutely gorgeous. And both of those games are 5 years old now.

So yeah, there's that.

But on the flip side, watching some franchises transition from PS2 -> PS3 was just huge, and even though I realise the gap won't be as big this time, it was still awesome to see. WipEout Pulse (PS2) -> WipEout HD Fury for example. That 1080p 60 FPS does make a big difference. Then there's things like Ratchet & Clank. I love the originals on the PS2, but the PS3 games just blow them away in terms of visuals and that definitely adds to the experience for me.

In the end, it's a mixed bag. I have no problem playing a PS1-era game if it's a good game, and that's what's more important than anything. I hope, for example, that AI and physics get improved more next generation. But I'd still take another graphical leap over what we have now!