That we're 3 and a half years into the generation and many games are still crossgen is quite unprecedented; by this point last gen (2017) PS3/360 had been well and truly left behind.
AAA games cost so much these days that publishers don't want to let go of the last gen player base.
Regarding the gaps between gens, I do feel that they're getting smaller as a result of diminishing returns; with the exception of Hellblade II, PS5/Xbox Series games don't look massively better than PS4/XBO games to my eyes. Technically the gap is there, but its less noticeable than in the past cos last gen games already looked really good, to my eyes at least.