I'm all for graphic improvements over today's hardware. Even looking at the likes of Uncharted you can see there is plenty of room for improvement. We are far from the limit. Production costs are a bit of an issue but I think the market is big enough for the main companies - the ones that matter - to keep releasing games far better aesthetically than the ones we already have. The lesser ones might move to tablets and smartphones, but I really doubt you're going to see, say, your next Call of Duty based around the next iPad.
We won't have photorealism next gen by the way. Epic themselves said you need hardware some two thousand times stronger than today's for it. It may even be impossible with electron-based semiconductors since some recent research shows transistors it will likely start showing irretrievable loss of information when computers are a thousand times faster than today's. But that's another talk entirely.
Maybe this whole thread is about damage control since we now know the Wii U's capabilities (or lack thereof...)
