I think this medium took the wrong path when it came to keep trying to innovate itself. Persuing better graphical capibilities only leads more expenses at the developers part, and more shallow gratification from us. They basically train us to be conformed just with the graphics advancing, and I think that's a mistake that the industry as whole is going to need to pay for in the future.

The only significant leap I can see is if consoles start having 4K Development. And I don't see that happening for at least 2 generations.

Only thing left for consoles is 4K resolution, and that´s not coming anytime soon

The graphics we see today was possible 10 years ago, it's all about the processing power that needs to keep up with the times, we are already 5 years delayed because of the 7th gen consoles. 8th gen is already outdated. If pc was the standard, we would have seen games we wouldn't believe was possible today, today. 

The difference isn't as big, but it's still pretty huge.

This is basically something I've thought about for a long time. The cost of making games look better and better has to get more expensive as time moves on right? So what happens when your audience doesn't grow as fast to offset the cost (or worst case shrinks)? 

Yes, we will. And the gap between Crysis and Battlefront is extremely big... it's pretty noticiable.

Games are still getting graphical improvements overtime, it's just a lot harder to notice.

We still haven't really hit 4K with games yet, so there is still a long way to go.

I suppose the graphic tools will become cheaper and easier to use, but if they try to improve those tools to get better visuals, it will cost a lot of money.

We are definitely seeing diminishing returns from graphics. The next step is animation and hair/skin rendering to get past the uncanny valley.