The truth is maybe we are reaching a point of diminishing returns with visuals, so the whole old concept of "maximizing a hardware" like wringing a spong for every little bit of horsepower may be antiquated.
If you're a developer and you max out a 10-20 Teraflop machine (talking about PS5/XB2) ... you're likely talking about have to spend $100+ million just to make the game (not including marketing costs).
These are budgets that will begin with match/outpace Hollywood blockbuster movies, and if one of those games flops it will be enough to sink a lot of publishers. It will also mean that only a small number of games get greenlit.
To be honest I think when you look at this gen we're getting games that sufficiently look realistic in pretty much any type of art style you want to make with monstrous scope.
Therefor maybe more incremental upgrades for people who are willing to pay a little more depending on their personal taste is simply a more sensible upgrade path from now on, rather than forcing devs to have massively higher dev costs every 5-6 years with an enormous jump in processing power.
That model was never going to work forever if we're honest about it. Even in the "yeah but the Wii was different" ... well yeah, there's nothing stopping additional controllers from being released, it's not exactly pro-consumer to force people to pay $250-$300 extra to basically just play with a new $60 control scheme; you don't need a new hardware config just for that.
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