I see the fallout from this generation having two equal but different influences on the industry which will lower the emphasis on creating high end graphics; diminishing returns on investment in high end graphics, and the Wii's success without high end graphics.
Now this doesn't mean that the next generation consoles won't have noticeably better graphics than the PS3 or XBox 360 because the hardware costs of producing better graphics in 2011/2012 will be pretty tiny; consider what the latest and greatest GPU and CPU of today will cost in 2011/2012, and how much you could enhance this processor without running into cost or heat problems.
From a developer perspective I think the Wii's success will have a great influence on how developers see things from now on. If you are producing a big budget blockbuster it makes sense to take advantage of the latest and greatest technology because you're almost ensured to recover your cost and the graphics will help sell your game; if you're working on title which is much smaller it makes more sense to produce crisp and clean graphics that are expressive and not necessarily all that advanced.
