Part of me honestly wonders if you really need graphics much better than the above. That looks like a fairly realistic depiction of a forest. How much more is needed? Having a game that looks just like reality isn't going to be great anyway IMO.
For a company like Nintendo I almost think the above would the maximum type of horsepower they'd ever need. Their games would basically begin to look like the CG renders they use.
It's not about needing though. Zelda has stolen me away completely from HZD.
Good! I'm not the only one!
Graphics are always important but, when I think of my favorite games of all time, hardly any had the absolute best graphics of their day. They were just absorbing, fun experiences. The prettiest will always get the attention but it takes more than that to hold my attention.