Yes, the ram will affect the way things are delegated in games and can affect art direction:
1) Graphics downgraded tremendously
2) Lighting downgraded
3) Lack of draw distance
4) More expansive worlds
5) More areas load slower instead of allowing for seamless progression.
6) Polygons held back
7) Holds back tech that allows more emotion to be shown
The list goes on and on.
Last gen is last gen techwise. Next gen is supposed to allow for newer experiences not hold them back. Devs will not compromise that because Nintendo cannot create tech that allows devs to realize their ambitions. Games like Watch Dog's probably could've been bigger if it was all last gen but Ubisoft played it smart and knew they will need the money from the current gen gamers. The game is more restricted than a next gen game would be.
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