I don't see the uncanny valley as being nearly as much of a risk as increasing development costs ...
With each generation since the NES development costs have increased by (roughly) 2 to 4 times primarily because of the added cost of producing graphical assets to improve visuals in the game. In most cases, sales that would have made a game a huge success 2 generations ago lose a company a lot of money today; and many of the companies who have bought into these generational jumps in graphics are bankrupt now because their sales were not unbelieveable enough.
As we move towards games that regularly cost $100 Million to produce, games will need 5 million sales to break even, and even a single mistake could bankrupt large publishers. This is a market that will most likely collapse upon itself.
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