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I'm not sure what you are talking about??  The graphical gap between the X1 and PS4 really isn't that big.  X1 games will probabally be at slightluy lower resolutions, but thats about it.

Also, the "Massive" forza downgrade you are talking about actually wan't all that massive.  The only thing that they cut out really was the shadows on a lot of the trees and stuff like that (I would know because I have the game, and it looks great).  This year, all the games demoed should be on X1 dev. kits, and should run fine now that the developers have gotten a better handle on the hardware.

I look for all of the big 3 to show up big with awesome games, but I don't really think the graphical gap is going to determine who wins necessarly, at the end of the day we just want games that are fun to play regaurdless of the graphics, or pixel counts, and whoever shows the most of that will probabally be the winner.