So, before the next gen consoles were all announced and released there was quite a bit of excitement about all the possibilities they would bring to gaming, how powerful the hardware would be and how amazing the games would be.

Have your expectations been met so far or has next gen fallen below what you expected of it?

Fall way below expectations. I hoped for something more impressive (WiiU/PS4/Xone).
I guess is just consecuence of the lack of excitement on the new hardware.

Nope... as always, no game droughts means game droughts for all consoles

Hmm, PS4 is still without it's biggest wild card for me Project Morpheus, so there is that. Games I'm not expecting to be mindblowing until 2015-16, but the power is a bit of an dissapointment.
I think if Sony would be financially the Sony of early 21st century, they would use the razorblade model and we would get a more powerful PS4 with Sony eating the cost, but now well...the cut down version of 7870 is not enough if we're not getting every game in 1080p which I think should be a standard in 2014. And that's the most powerful console this gen I'm talking about, which is telling...

First 3DS came out and I was one of first day buyers - WOW real 3d without glasses - and then, out of nowhere "Where are the games?"
Then Wii U came out - you can't fool me twice - "Where are the games?"
Finaly I bought PS4 - now I'm like - WOW Wii U has so much to offer.

xD

Except people don't want a razorblade model - they want an affordable gaming system.

Ask me again after E3

...but for now I say it has fallen far below my expectations

It doesn't really feel much different from the last generation to be honest - hopefully E3 will announce some exciting stuff

Maybe I always thought razorblade model means something different than it actually means, but how I always understood it, Sony have been making consoles that were expensive to make and selling them for less than they were worth, to cover up the losses by software sales, which were potentially higher thanks to the consoles faster adoption rate, because they were the better deal than consoles that weren't made with razorblade model in mind. They've done it with every home console before the PS4, the most famous was PS3 which was speculated to be cost around 900$ to make, sold for 600$.

It has nothing to do with being affordable or not, in my scenario, Sony releases PS4 for 399$ but inside we get a cut down 7970 instead of 7870, just Sony isn't breaking even like now, but rather loosing 50$ per console.

"Next gen so far" is not even announced. I think you mean current gen. Or lets call it new gen instead.

Back to the question new gen is by far below my expectations.