People who say we're not going to see a huge gain from a new set of consoles are crazy. We can't even get a game to run native in 720p right now.
Games like Skyrim would garner a HUGE boost in terms of stability and quality from more system RAM and more powerful hardware.
OP, have you played the PC version of any recent console games? There is a noticeable different in quality.
Yes, I play allgames on PC except console exclusives.
I believe it is because story driven games (which we can agree are the most popular genre nowadays) don't need much technology besides visual fidelity.
What I would like to see are new experiments with procedural stuff. I'm ready for big procedural cities and deformable terrain in RTS. I want all the physics gizmos of the sand-game in a game that looks like battlefield 3. Just imagine making a tunnel trough a mountain to get to the enemy at 1:1 scale; blowing up a damn and see the water flood a valley in real time, burn a forest, pile sand, melt metal!
I don't think that story-driven games are the most popular genre, it's the opposite - COD, Minecraft, MMOs, Skyrim are not story driven games, they are all about gameplay.