We are not even close to photo realistic graphics in console games right now. There is much more to graphics/game engines than how realistic people in games look anyway. Consoles still could double a couple times in power and still have room to grow in terms of things to process without games looking photo realistic.
Leaves blowing in the wind, grass, dynamic shadows and lighting, millions of variables being calculated constantly, etc, etc and all of that has nothing to do with super high res textures.
One thing though. I'm waiting for the day when the GPU and the CPU are no longer two distinct units. Not just that they are on the same die package, but are actually the same processing unit with the necessary computation parts in their pipeline to process _anything_ fast enough that it doesn't make sense to have two separate parts.
















