Then the game gets confusing, and basically becomes unplayable.

I'm not saying this will be the case for every game, but it already is the case for some games. The problem is that humans (those that play the game and, though helped by ever more fantastic tools, ultimatly, those that develop the game) are not evolving at the same pace as technology. That said we're not there just yet, we're not even there at SD resolutions, much less HD.

graphics will continue to improve as long as they keep a low price point. Whether the Wii wins or not it shows that a 400-600$ price point is too high, especially if you are taking losses and can't afford to drop the price quickly. As each generation passes graphics will be less important and art style and price point more important. However i think that they will continue to get more powerful as long as they can release it at around 300$. Each consoles life should slowly get longer also.

Legend, since you didn't understand I will try to restate the WoW argument for you ...

You argued that it wouldn't make sense for a company to choose not to take full advantage of the hardware of a system because it would hurt sales; essentially that people judge a game entirely by early screenshots and are looking for games which take advantage of  new graphical technologies. WoW vs. Everquest II demonstrates that this simply is not the case, artistic style and gameplay matter far more then taking advantage of the available hardware; had people been primarily interested in graphics Dungeons and Dragons online or Vanguard would have outsold the Burning Crusade expansion (which they didn't).

Now, if everything was entirely equal a developer would choose to take advantage of the hardware but that simply isn't the case; creating the content to produce a PS3 or XBox 360 game that takes advantage of the hardware is amazingly expensive, the PS4 and XBox 720 will likely be dramatically more expensive.

Anyways, I think I can demonstrate the level of polygonal and texture detail I was talking about in my initial post on this topic. Consider Super Smash Bros Brawl:

If you were creating this game on the XBox 360 or PS3 you could improve on these characters by increasing polygonal detail on the hair (and other features), adding normal maps to give small details to everything, introduce shader effects to give realistic material properties to the metal/leather/cloth/skin/hair; does that really add anything except for cost? If every object in the game is as detailed as these characters are would you be disapointed when you looked at screenshots?

Not every game could take this approach (a large portion of racing game fans want every game to look closer and closer to reality) but the majority of games could.

NO!!!!! Just look at Crysis!

The source has an awesome post, i like ones about predictions. What about this scenario: Wii-going strong, MS/sony both losing money.............Opens up a door for another competitotor(lets say apple)Apple introduces a cost right machine/motion system with improvements over wii's desing controller problems all are fixed and weighs in with a nice price tag, and somehow they make a ipod/motion remote that you can take with you??

the point of the wow (which i play) and Everquest2 (which i played- briefly) (I play MMO's) was to point out that Gameplay & Art Direction> graphical prowness+Gameplay. at release artistically WoW was and is georgeous..and the gameplay was the most solid of any mmo released to date. on a mainstream computer everyone that could run the game got decent to great fps, depending on their particular computer at release Technically EQ2 was unparallelled- artistically it lacked soul. the gameplay was decent, but not as good as wow's- and hte fact that eq2 "future proofed" the graphics engine meant that only the truly high end computers could Run the game as a decent frame rate... in terms of consoles Wii=wow PS3=everquest2 oh and wow HAS changed the PC gaming to a point- pc game sales are down significantly since wow came out. WoW has sold Extremely well as a pc game (over 8.5 million active accounts, well over 14 million people have Tried the game) and for the record, i know someone who tinkered with their 360 and got wow running on it.

Hell no. technology never stops.