I don't think there will be such a great division this time around, simply because the cost of developing and especially producing even higher end graphics than for example Crysis is too high. The market is not ready to sustain such costs yet, and I don't know when it will be, if ever.
Another thing is that the current level of graphics is "good enough" for all but the most exreme, thus the economic incentive to up the level actually get smaller as the user base shrinks. What we might see, and I hope so, is that the extra horsepower in PCs is put to better AI/physics etc. I, for one, would love to see AI take on certain emotional aspects. And what would be a killer game for me is a Virtua Fighter with realistic physics modeling of the fighters so that instead of going through motion captured sequences, the fighters' bodies would actually react to the hits and misses.
