For better or worse, consoles continue to get stronger because it's what a significant portion (i'd argue majority) of the market wants. If console hardware stagnates, the market will just shift further towards PC gaming. Even the current speed that consoles progress isn't enough for many.
A console doesn't have to be powerful to be successful, but personally i don't think the total absence of competitive hardware is a healthy line for consoles. Console hardware doesn't need to stagnate, they just need to ensure the development process is as simple as possible for the performance they offer. That trend has fortunately already started with the PS4 and X1, which has made the jump from the 7th to 8th gen relatively painless.








