I think someone has bought into the hype train ...
Being that many affordable ($100) graphics cards today are seeing benchmarks with over twice the frame rate, twice the resolution, with 16xAA and 16xAF, higher texture detail and more advanced shader effects than these games are getting on consoles I think it is fair to say that what is preventing PC games from "Blowing people's minds" are that these games are (almost exclusively) developed for consoles.
Beyond that, the best looking PS3 and XBox 360 games tend to have relatively small static environments; and even moderately large or modestly dynamic environments are really rather unimpressive. While it is certainly not a fair comparison, you can see this by taking a similar looking seen from a pre-rendered movie (like a Pixar movie) and compare it to a HD console game and the flaws will become rapidly apparent.
Now I'm not saying that graphics (alone) will ever be the selling feature that they once were (if they were at all), but saying you can't improve upon HD console graphics is laughable.
Edit: Just a comment on HD consoles running 3D TV ... Being that most HD console games struggle to reach 720p at 30fps how great will their graphics be if they need to reach 60 or 120 frames per second?