Norris2k said:
We are still to see how far the current gen games will improve. Kilzone is 1080p. texture are very clean, effects everywhere, it's colorfull, there is no clipping.
Diminishing return is not a philosophical discussion, it's a fact. This generation mostly add a lot of memory that solve the problem of blurry textures and limitations in map sizes. What can be done behond that ?

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Differences are still big from 2005 to today, and from today to 2020 I think the realism jump will be noticeable.
This is where we've come in 10 years. I was blown away by Alyx in HL2 at the time.



(make sure to enlarge to full size).
Of course, the Beyond 2 Souls image on Gen 7 is only possible in a restricted environment and lower rez. Gen 7 is scratching at this surface, but imagine characters like this, only not restricted to small environment games like Beyond 2 Souls. Imagine many characters like this on screen, in detailed open environments, in higher definition at higher framerates, across a broader spectrum of games. I think we have yet to see that, but I don't expect anything less in the liftetime of PS4.