Even with next gen, we may not get the games we want, or games we should be experiencing. How many unique awe inspiring games did we get this gen that wasn't that much different from last?? How many games pushed AI and physics far? Even with next gen with all that ram, ssd, cpu and gpu jump, i feel like the most we will see is prettier games running at 4k/ 60 to 120 fps. But i'm hoping we will see AI and physics taken to a new level, and the cpu being used for a lot of onscreen calculations. This will mean more work from devs, but thanks to the jump to ssd, ram etc it may mean games can be produced quicker, and allow the extra time to really work on detail. Hopefully we will never see the same looking npc appear in game, or similar looking.

If they don't it isn't because the HW isn't improving in the needed areas, just that those devs didn't try to improve these aspects (I doubt).

For me it's not so much direct quality of the graphics as it is breadth and depth of said graphics. I know pc master race memers will decry the lack of consistent 60fps, but i'm personally ok with 1080p@30fps, especially since i'm still stuck at 1080p and will be until a 34 inch 4k tv comes out. What excites me for this next gen is ssd, more complex games that can handle 1080p @30fps with tons of stuff loaded, smoother and more beautiful games.

Consoles aren't for pushing the best graphics ever, they will never beat PCs. However, they do push the lowest standards.

If actual shipping games can meet or exceed the quality of the UE5 demo, then the jump from PS4 to PS5 will impress me more than the jump from PS3 to PS4.

I'm happy with how my Switch games look for the moment; when the times comes I would hope it's successor can exceed the PS4 graphically and incorporate some of the advances of PS5/XSX.

At this point I don't really care much

If last gen is anything to go by, we will get this, as the UE4 Tech Demo looks awful compared to some of the games we got like Horizon, GOW, U4 etc.

https://www.youtube.com/watch?v=dD9CPqSKjTU

I wouldn't say it looks awful, and it is notable that this demo is from June 2012, a year and a half before PS4/Xbone came out, while the UE5 demo comes to us six months out (or less) from PS5/XSX. 

I'm being dramatic with awful, but it is a serious step down compared to what we saw later in the gen. The texture quality, material shader quality and the physics simulations were not anything like you saw 2015 onwards. His armour has no life to it at all.

Plus UE4 produced, Days Gone, Gears 5 etc. All much more impressive than the demo for UE4.

Not saying it wasn't surpassed, but it does date to well before this gen started instead of the eve of the 9th gen, so I don't think it's a 1:1 comparison.

The point of these demonstrations isn't to showcase what games will look and play like all generation long... But to showcase the individual rendering techniques and technologies that will define the games thanks to new hardware feature sets that enable them.

Unreal Engine 4.0 was showcasing the new Tessellation capabilities, Asynchronous Compute which gave us some impressive material shader effects, Cloth Physics, Post-Process effects and so much more.

Again... These demo's are NOT representations of what games will look and play like all generation long, that isn't their purpose, it's showcasing new technologies and effects, that is their purpose.
Unreal Engine 5's demonstration is it's all about it's new geometry technology, Nanite and the Ray-Traced lighting effects, Lumin, not what it means for gameplay or future graphics. - Developers will leverage those technologies in different ways, even build upon them to make them even more impressive... And that is truly something to get excited about.