6 teraflops vs 1.23 teraflops for the base XBone is a 487% upgrade to the GPU. That's a generational leap IMO. Admittedly the CPU improvement is far more modest but the difference is massive. Remember the jump from the XBox 360 to the XBone represented a 512% increase in GPU power (.24 tflops vs 1.23 tflops) so the difference is nearly the same and the 360's lifespan was looooooooong and the hardware was grossly obsolete by the time XBone was released. 

It being free, or alternatively being paid for it.

There is more to "power" than just flops.
There is more to "graphics" than just flops.
When a game only needs flops to draw an image on a screen and nothing else, then your blatant abuse of that one singular denominator might actually have some relevance.
Just remember you can have a GPU with more flops be slower than a GPU with less flops.

A generational leap usually brings with it a plethora of new graphics techniques, efficiency gains, multiples more Ram and an overhauled software stack.

Scorpio gets none of that. Ergo. It's not a generational leap.

Yep fair enough I agree with you there but I guess what I'm trying to say is that when PS5 eventually comes out, that is the next generation commences it won't be too much stronger than a scorpio IMO

By the time Playstation 5 launches, GDDR5/GDDR5X, Polaris, Vega, Zen... Will all be old news and will all be replaced by something better, faster, more efficient.

If you want a glimpse of "next gen" take a look at nVidia's GV100 core. It's nuts. You could be looking at upwards of 10x the capabilities of Scorpio if not more at 4k. It's a real powerhouse at 21.1 Billion transistors and an 815mm2 die size on a 12nm node (Likely 14nm FEOL or BEOL. Haven't checked.)

I'll check it out.

You surely don't expect anything of that power in a console in 2-3 years though? 

I don't expect an exact clone of that chip in a console. Ever. It's way to big and expensive to manufacture.

But smaller, more efficient chips that can achieve similar results should be doable in 2-3 years, especially as we are transitioning to smaller processes during that time.

GDDR6 should be the defacto standard for high-end GPU's in 2-3 years time, it will be cheaper than HBM2... And even provide more bandwidth than Vega's implementation of HBM2. - This is what Next-gen consoles will use.

Zen+ will be well and truly on the market and infiltrated both the high-end and low-end, should be faster and more efficient than current Zen chips.

Navi will be on the market with it's refined NCU architecture and we could even be looking at it's replacement by then.
Graphics Core Next is old, it's inefficient, it's slow, it's powerhungry. - It's what the Xbox One, Xbox Scorpio, Playstation 4 and Playstation 4 Pro are based around.