Yeah, to show a marked improvment over the last gen systems, a game will need a lot of effort put into it. Halo 4 cost what... $40 million? It's going to take at least that much or more to make a game that looks even better. No 3rd party is going to put that into game that is selling to an audience of 1-5 million systems. Nintendo doesn't need to, since NSMB and NintendoLand will sell the system and are fun without spending that cash. The next wave will come and will look impressive, and will be selling to a much larger install base next year.
Kameo is such a bad example. It was easy to take a Hi-def game, put a little effort into it, and make it look better than a SD game. Current games are beautiful. It will be huge projects making games look better than Halo 4 or Uncharted. I would suggest most next gen games won't look much better than current gen simply because developers don't have the resources. Only the big games will wow you.
