Basically, the OP is saying that the absolute best of third party game graphics are impressive but just barely not as good as if the game had been focussed on one platform.
I disagree.
It's a matter of opinion, as far as graphics go but I personally feel that the upper echelon of gaming graphics are Killzone 3 and God of War 3. Period. That's it--until Uncharted 3/Gears of War 3 hit (and I don't expect them to blow the previous two away--I just expect them to be on their level). Of course, all of the games listed are exclusive. Then again, all of these games are either soon to be released or released in the last year.
Anyway, I won't go into a long rant. I'll just say this: Just because Crytek didn't come in and blow away every game ever released in the history of ever with their first console game, that doesn't mean that it can't be done. I haven't played Crysis 2 (and probably never will) but the consensus seems to be that only one or two games currently available look better than it (debateable opinion, I know). It can be done. It's just that Crytek didn't do it. The same hardware that we bought back in 2005 is pumping out the visuals we see today. That means that these kinds of graphics were possible, even back then. The games that are going to blow us away next year will be produced with the same 2005 /2006 technology. It's just a matter of who gives it to us, first.
Just because something is "A", doesn't mean that it can't be "B". This was a bold claim based on the OP. If anything, all that the release of Crysis proves is that the current gen's potential has not been reached. There's still more that can be and will be sqeezed out of our 360's and PS3's.