I don't think it matters if the 360 peaked, games will improve with better developing tools and techniques.
We can also expect a boost in graphics and features the day MS lets developers use the HDD to help run games.
Who knows maybe the 360 will one day be lucky enough to have a 20 minute install
Proud Member of GAIBoWS (Gamers Against Irrational Bans of Weezy & Squilliam)