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For VR I would say, yes the avg PSVR2 game is much behind the avg PSVR1 game. But that's because Sony won't make games for PSVR2 so we're stuck with mobile graphics to work on Quest as well.

Two years in, RE8, CotM, GT7 are still the only next gen feeling VR games, RE4R a runner up. (missing VR cut scenes and still rooted in the 6th gen) The leap in resolution is the next gen feeling, but the games have regressed. PSVR1 had tons more high fidelity games.

For flat games, the backwards feeling comes from all the crappy upscaling techniques and lack of optimization. Having multiple modes hurts have one fully optimized single mode for the dedicated hardware. And PoE2 doesn't even make an effort, here is a bunch of PC settings you can try to find a balance yourself (and still get massive screen tearing and frame drops on PS5 Pro)

Sure some stuff gets fixed. Horizon FW was migraine inducing at launch while Forbidden Shores looks and runs phenomenal (on PS5 Pro anyway)
And some look solid at release like Rift Apart and Astrobot. (going backwards again, Rift apart had much more going on)

Also the introduction of mid gen refreshes and cross gen releases has robbed us from the next-gen feeling. There's no launch line up anymore specially made to get people to move over to the new gen. Games need to run on the old hardware thus can't do much else than raise the resolution for the new hardware. That's not a next-gen feeling, that's a remaster feeling.