Aren't graphics card improvements going to be less important now and going forward? With Windows Vista, we went from DX 10 to 11, but with Windows 8 you only get DirectX 11.1. And twelve will not be around till Windows 9 2015 (or perhaps on the new Xbox too?) The upgrades between operating systems doesn't seem like it will matter as much going forward as it has in the past two decades.
So doesn't that mean the difference between a PC and a console will be less significant than it has been?
They should be able to push out more frames and better AA with newer cards, but it seems like the bulk of the innovation is locked in with the software/operating system.