OH right.

YES 360 IS MAXED.

Its all in YOUR head, your brain washed by Sony and the super-ulimate-better-than-everything-PS3.

The fact is 360 Graphics processing unit (Which determines graphics) is better than the GPU in the PS3, Therefore it is impossible for graphics on the PS3 to be better. Exclusive wise.

Graphics = Opinion.

"The fact is 360 Graphics processing unit (Which determines graphics) is better than the GPU in the PS3, Therefore it is impossible for graphics on the PS3 to be better."

ROFL LMAO! this really needs a face palm, we gets still idiotic statements like this even after seeing Uncharted 2, God of war 3 and killzone 2.

Actually, The PS3 GPU is less powerful than the 360 GPU...but you forgot to mention that the SPUs of the Cell can actually do EVERYTHING that any GPU does...so if you combine the SPUs+GPU > GPU.... in that way, the ps3 is better...since it has been proven that you can do AA, Lighting, AF, Post-Processing, SSAO with the SPUs, while the 360 only uses its CPU just for Calculations.

To answer OP, the 360s gpu's upper limit was reached a while ago. But as always there will always be new ways to code things and get more performance out of the 360, that's a given for all piece of technology. But I doubt you'll be seeing a jump in "graphics" on the 360 from what you're seeing now, not unless Microsoft changes their programming philosophy and rehauls Direct X to utilize the CPU for rendering. Probably isn't going to happen cause that'll cause a rehaul of Direct X on PC. Though I still feel another thread needs to be made on what the 360's CPU can do for its graphics cause I believe that'll be the only way to get a big jump.

It must be maxed out, the 360 will literally be on the point of explosion as you play it...

Or maybe they don't have the experience of the platform to get the very best out of the console

No the 360 hasn't reached its limit.  Also you are overlooking the fact that Mass Effect 2 a game that released earlier this year which is by far a much larger open ended game was in 720p on the xbox 360.  Remedy is a small development team so they probably had to make sacrifices in order to get the game out on the set release date.  They have already said that future dlc and future games will look even better now that they have the engine created they can just optimize.

Other developers may choose to develop a game in sub hd on the 360 for a variety of factors.  I think a lot of times its because the 360 is so easy to develop for that the developers don't push themselves and they get the games to look "just good enough" to release to the public.

It's probably a lot more interesting to use the gen purpose CPU to push game logic/AI than to make the graphics marginally better.  The graphics advantage of the PS3 is not night and day above the 360, especially if nobody can really tell unless you pick through a game like DigialFoundry.  For the general consumer, running at 720P or sub 720P doesn't mean shit, just whether the game is fun or not.

DX11 is where the big changes in graphics are going to be with Compute shaders, tessellation, etc.  The Cell model didn't work and is discontinued and Larabee didn't pull through.  Devs shouldn't be wasting their time trying to make the CPU do GPU things when the market has already bet against that.