I think you're not too far off the mark.
I think that the PS5 will have its own new titles exclusive to it, but will continue to play PS4 games natively. The jump to an x86 architecture will allow for that. Which means that every games released on the PS4 will be able to sell for the PS5, and will run better on it. But I don't see Sony, or anyone else, releasing a console that has no unique or exclusive content.
Considering VR is about to become a thing, and as it become more intricate and sophisticated, more powerful hardware will be required. But even if VR ends turns out to be a fad, I don't yet see that we've reached that so-called point of diminishing return. When a Skyrim like open world game can look as technically sound as The Order 1886, then I'll concede. Until then, console generations are going to remain the way they are now (non cross-generational).
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