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It's funny that someone would mention this today because I was just listening to reviewtechusa and BLACKB0ND this morning talking about this subject (well the convo actually starts out with Ubisoft). It's here if you want to listen http://www.youtube.com/watch?v=sSY8myWpOiM I found their conversation entertaining.

As for me I do think this gen of consoles is relatively weak when compared to the leap in hardware advancements from the PS2 to PS3 and the Xbox to X360. Since technological advancements move so fast now it's hard to have a static piece of hardware, that can't upgrade, and still be technologically relevant.

But as long as the devs are creative and focus on actual gameplay rather than graphics, it won't matter how weak it is.