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Chark said:

Next gen looks much better than people give it credit for. Watch Deep Down. Watch it! Download it in 1080p, play it on a TV or a large monitor. Do it!

Go play some launch games from PS2 and PS3. The bouncer on PS2, then Resistance: Fall of Man.
Go play Halo: Combat Evolved on Xbox. Then play Kameo or something on 360.

Play Killzone on PS2, Killzone 2 on PS3, then watch Killzone: Shadow Fall

Actually test and look at what kind of lighting it has, The way the shadows work. The light refraction. Water effects. Particle effects. Smoke. Fire. The destruction of environments. The physics interaction. The detail in the textures. The feel of melee or movement.

Look at the way the fire moves in Deep Down against his shield. How it flows around it. Contact the shield. Melts it. Pushes the character. Look at the character animation in the opening scene. The way the eyes move, the level of muscle detail in the face.

It runs natively in 1080p, not 720p, not 540p.

Glad you at least have a similar view to me. I think the best testament will be after the PS4 launches we will go over to a friends house to play PS3 and think "oh, did these games really look this bad?"