Am I disagreeing with that?

Let's do an scenario like you did before. You own all the consoles, last-gen version is 10€/$ cheaper and a few of your friends are still getting that version. Which would you pick?

It's all perceived value. We are humans, we make different choices and we have different preferences, that's the fun of it.
EDIT: In the perfect world you would get the best whenever possible, but sometimes things happens.

The industry constantly remind us that not.

Hmm, to answer the thread title, power doesn't always mean a better game. It's more so a piece of the whole part to making a great game. It also depends on the game. Not all games need a large amount of it to be great. I suppose it's a matter of scope. More power can be used to make better things, but it's not the most important.

Now the other question, more powerful hardware I feel also depends. It could used to make larger, more impressive games, but I don't think it's important and something we need now. I kind of feel focusing too much on that could limit innovation somewhat.

Of course not! I mean look at Knack!

Not necessarily but never hurts, while the lack of it can limit developers/make games perform worse, so yeah sometimes it matters

No but it certainly gives the developer more to play/work with, as somebody mentioned, more potential.

Well yes. More power is not exclusive for better graphics, it can be used for better framerate, AI, bigger or more detailed worlds, etc.

Yes, if it can provide better frame rate and AI etc.

PS4 and X1 were weak pos from the get go.

Minecraft needs plenty power to run though. 4 player splitscreen on ps4 is pretty rough with lots of slowdown, stuttering and world streaming in late. Add a few mods on my laptop and it grinds to a halt. So if mods make a game better, than more power means a better game.

More power does make VR games play better. Higher render resolution and higher framerates helps with immersion and motion sickness. Dirt Rally VR on ps4 pro is a shimmering mess and suffers from quite a bit of slowdown in one of the Monaco stages, not nice. Ofcourse devs could spend more time fixing that, more power would solve it too.

Currently I'm playing Mervils a VR adventure, made in Unity, possible because of extra power to run middleware. It's still not good enough though. Smooth turning is not smooth, stuttering when there's a lot in view. Dunno who is to blame for that, yet this can't maintain 60fps while turning the camera

More power doesn't have to result in pushing the graphics to breaking point. It also means easier to develop, less worrying about optimization, more opportunities for indies to succeed with gameplay innovation using middleware. More power is more choice.

More power / memory would also have meant more time spend with Viva Pinata, LBP, Mario Maker, Fallout 4, all games where I quit playing because of hardware limits. I should add Minecraft as well, I gave up on some of my redstone projects on ps4 as it started glitching out too much even in single player. Mincraft could really use a pro patch, hopefully boost mode will help already.

Clearly, yes.

Take any game you can think of, good or bad. Add more power. Without changing any gameplay element or the art style, more power will allow: higher resolution; better / more stable frame rate; longer draw distances, less or no screen tearing; more detail and better textures; shorter loading times and area transitions...

More power means a better game experience for any given game. It is most clearly demonstrated in generation transitions where the same game is released on last gen and current gen platforms. No one ever says "The Last gen version is the best version." At best, the last gen version is good enough that you don't feel compelled to buy the new gen hardware for that game. Though as always, Nintendo may offer and exception if BoTW makes good use of the Wii U game pad. It could be that because of game pad functionality, the Wii U version is a better game than the Switch version.

Does it mean you will get better games if you have a more powerful system? Of course not. The quality of a game has nothing to do with the hardware and everything to do with how good the developers are at making games.

Look at all the utter crap games you can play on Steam Greenlight on a $2000 PC. The developers had access to a whole lot of power, they just chose not to use it, or theuy made and absolutely shit job of it. And then there is basic developer incompetence on a particular platform, ref Batman Arkham Knight. PC versio being unplayable for many people, even though gaming PCs are more powerful than consoles.