There will be great games out next year, R&C and so on have great potential. Basically Kaz is trying to tell people that what you are seeing now is far from the PS3 at its limits, If you take a look at PS2 games right now and the amount they have improved since launch titles, he is pretty much correct. I reciently found out that you can run Gran turismo 4 in 1080i at full 60fps, something like that would never have been possible without some serious years of development.
Anyone doubting their "10 year vision" should also check the production cycle of the PS1 (11 years) and the PS2 (7 years and still going strong), just because a new machine comes out, doesnt automatically end its predessesor. I agree 10 years for the PS3 is pushing things a little, but i wouldnt be surprised at 8.
If in 3 - 4 years M$ try to introduce yet another console and cut off their existing fanbase once again, i think it will be the worst mistake they ever make. Even after almost 2 years on the market theres still alot of 'floating voters', still unsure if its the right machine for them.
They need to establish a machine fully before moving to the next, something the xbox failed to do and something the 360 has a long way to go before achieving anything close. This is not the world of PC graphics cards bill!