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Normchacho said:

One of the big issues is going to be that games that come out on the PS4 are going to need to look and perform up to the standard this generation has set. Let me explain;

Lets say that The Witcher 5 comes out for the PS5, and it's world is twice the size of the map in The Witcher 3, has more NCPS, more foliage, and is just in general much larger. There is no way that game would work on the PS4 while maintaining a level of fidelity and polish that gamers have come to expect from a PS4.

You are right but for one little thing. It all boils down to choices. 

Take the witcher 5 in your example. No matter how big or good a game it is on the PS5. They could make the same game run on the PS4 even if its at 720p with toned down models, textures, geometry, lighting...etc. 

And that will be OK. cause anyone buying the game for the PS4, will know they are in truth buying a PS5 game and that if they wanted to see the game run at its best, then they would have to shell out for the PS5. 

This dilema is by no means a deal breaker. Look at destiny. It also being available on the PS360 didn't stop it from selling a ton on the PS41.