DX11.1's features are not needed on console, they are mainly tools for developers for performance analysis, video decoding, large shader cache for future proofing and also some improvements to multi GPU support and also tablet/ARM stuff for windows 8. 

The next XBOX will use a custom subset of DX anyway just like the 360 did, the 360 version of DX even had features that weren't added to DX on PC until DX10.1 they design the API arround the hardware on a console not the hardware to the API spec.

just mean it won't use 6670

Summary: “Avatar was rendered on supercomputers”  Yes, I realize that, but they are not rendering at near the resolution of Avatar at 1080p.

And since the 4K TV's are coming out, and 1440p monitors are already out, and have been for a couple of years.  It would be sad to have a consol that is already rather dated before it even his it's first major price break.

Not too many people at 720P TV’s when the Xbox 360 came out. Yes they were out, but more of an ‘elite’ TV, like the 4K will be in a few years.  And all the X360 games are developed at 720p.

Look - I'm not saying that they Xbox 720 will have 'Cameron’s Avatar' level graphics.  Although, being rendered several years ago, with ‘Moore’s Law’ things have improved much since that time.  And the Xbox 360 is equivalent of a super computer less than two decades ago.  And if it comes out in 2013 that’s nearly 5 years since Avatar was rendered.

 I'm just point out that there is plenty of room to improve 1080p if that's all it can do.  But there also to seems to be tradition that the target should be the new TV's coming out.

Console game comparisons inevitable....guess sony can watch the early ones and will have to repeat the same mistake to put the higher technology of the two.....!! Ultra HD begins 720p-1080i-1080p-1440i-1440p......for the glimpse of 1440p...pls watch in original quality http://www.youtube.com/watch?v=A6tFrK1k6_0( monitors or screen supporting 1440p needed...I know it sucks big time for most of us nw)

 4K TVs are nowhere close to being mainstream yet. The masses aren't in a rush to upgrade, especially when TV channels aren't going to start broadcasting in 4K anytime soon.

There is no tradition of targetting new TVs. One gen doesn't make it a tradition.

How the movie Avatar looks and moore's law have nothing to do with next gen graphics .

Since your expectations are so unrealistic and off the mark, expect to be dissapointed.

Sorry to break it to you but 1440 is not a TV resolution so won't be supported and 4k even for upscaled is not possible as HDMI 1.4 only supports up to 24fps for 4k video and I don't think many people will be happy if games were limited to 24fps... 1080p will be the max resolution next gen unless they have 2 HDMI ports which is just not going to happen. There is currently no HDMI spec planned that supports higher framerates so a final spec is several years off.

Well I guess Sony may try to push their 4k TVs via Display port and a good internal upscaller but I doubt it.

Nope 1080p will have to do for the next 7-11 years for consoles.

I guess it's all a question of bang for your buck, and whether or not the big 3 will make the right decisions in offering both a good range of processing power given today's TV tech, and a competitive price. I think the cube was a good yardstick to compare to. It was high-end, and it was affordable. That's all we're asking for really.

The price of gaming hardware has consistently gone down which falls in line with the entire tech industry's "get more for less" trend that is as consistent as Moore's Law. Last year's laptop may have the same price as this year's, but it will have better specs and adjusted for inflation, will actually cost less. 

Sony set the bar at $299 with the PS1 in 1994, and the Dreamcast set the bar shortly at $399 over ten years ago before dropping it back to $299 in an attempt to match the $299 PS2. MS stuck with the $399 price, offering a $299 option for the Xbox 360 and then Sony deviated wildly with a $599/499 price that didn't go over well with anyone even though with a price adjusted for inflation, it wasn't that much more than a $299 Playstation 1 back in 1994. 

It's already proven that the majority of consumers aren't willing to pay more than $299-399 for a gaming console, regardless of what else it does.

That leaves it up to the hardware designers/manufacturers to come up with new hardware using available technology (rather than paying for the R&D for all new technology) that can be sold at the same price as the previous models. Just going off the laptop analogy alone, it's not that difficult unless you're introducing some previously non-existing exclusive technology that was paid for by the company releasing the console. The R&D goes into optimization and customization of the existing technology and working out how all those components work together as an integrated design. 

So yes; gaming hardware is getting cheaper to produce as it always has. Software is where the real profits and revenue lie, same as always. Peripherals and controllers will remain big profit makers, same as always. And now platform producers also have online services as a major source of revenue and profits. 

So don't feel bad for asking more for less from any of the console manufacturers when it comes to hardware. That's just Moore's Law in effect. 

Plus, the 1080p TV standard isn't going anywhere until the broadcast standards change. Seeing as how they're currently set at 720p/1080i (and most people are keenly aware of how long that transition took), it's pretty hard to imagine broadcast standards changing anything before that 7-11 years you estimated. 

Realistically, we'd probably see consoles that can push out 1080p video to 2 or 3 HDTVs (separate signals, not mirrored) before seeing a console that utilizes a 4k display. And even then, I don't know who would have such a set up in their living room barring the same type of consumer currently gaming on a 2 or 3 monitor set up for PC games. 

Considering that the next generation of consoles probably won't even be able to render a stereoscopic 1080p signal at 60fps, talk of 4k display support seems even more pointless. 

Well I disagree, 4k TVs  display outputs will have use in the new PS4 console extensively...1440p atleast is so likely happening...don't be surprised if there are provisions for higher ultra HD....1080p will be the standard resolution though for next 7-11 years...