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In terms of graphics, I agree with the OP. There is not much you can do to improve games visually. Sure you can increase the resolution, use sharper/realistic textures, and add more details and visual effects. But do they add a lot in terms of "wow" factor? And are they worth the dev time and additional cost? I don't think so. The recent direct comparisons of PS3/360/PS4/XOne games seems to confirm this.

I sincerely hope that this generation will see a break in development ressources with more energy spent in creating bigger worlds, more realistic and dynamic IAs and in general more rich gameplay and game modes.