I'm 30. I lost my shit when I saw this back in the day, not even realizing until over a decade later that the cloud and bush were the same sprite.:
Then this came out and it was like "I bet we'll have flying cars soon."
I agree to a point. I completely agree with the point that there is a law of diminishing returns in graphics. That being said, it's not all just graphics. We're at a point where the biggest leaps in each generation may not be how pretty the game looks, but how much we can do, and how fast we can do it.
Physics engines, particle effects, number of enemies on a screen, size of a multiplayer map...all of these things will continue to improve as the number of polygons we add yields diminishing returns. The biggest leap in this generation is the amount of memory systems have, and for the PS4, the speed of that memory. Immediacy. Reduction of loading times. Storing game sessions in memory in low power standby modes. These are the things that define this generation.
For graphics, textures will get better, characters more detailed, environments more engaging, and less "cheating". There will be less visual tricks to skirt around resource deficiencies. Environments can have more detail with more things going on. I remember in Uncharted the first time I moved Nathan Drake into water and he came out and his jeans were still wet and slowly dried. It blew my mind at the time. Think about all the little details in games today that weren't in the last generation. Believable voice acting in games for example. Realistic facial expressions evoking real emotions. Destructable environments. Things will continue to look better, but moreover, there will be more to look at and more to do.