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Hiku said:

Well their position relative to the collective generation has some relevance, because it's one of several factors that affect how games are developed.
Technology in a specific gaming ecosystem generally moves forward, and people have put a label on a range of specs as "generations" that generally reflects the average game performance you could expect during that era.

Those things aren't written in stone before the generation has began, but can be changed based on a number of other factors. For example, an extremely popular but underpowered console can lower the bar for the minimum expected specs of a certain generation.
This in turn can have a negative impact (from the perspective of the other consoles) on multiplatform titles that would otherwise look and run better, had the underpowered console not affected the equation.
That's just one example, but there's certainly an expected correlation between different systems that can affect other systems part of what's commonly labeled as console generations.
If Amazon released a new console today that has the same horsepower as a SNES, even if it can run Undertale, which is a new game, people would rightfully not label it a generation 8 or 9 system. And it would have little to no effect on current gen titles.

The market adapts to a balance between horsepower and other factors such as popularity/profitability.
And I agree that this disambiguation in the console generations didn't start now, but of course people are curious about how new consoles will affect their gaming experience.

P.S. I could have probably summed that up in one or two sentences somehow...I don't have much to

I don't have much to add LOL I agree with most of what you're saying. Very well put.