It's a complete no brainer really.
Things will not change until there is some kind of standard photorealistic machine which is capable to do everything.
If you look at a DVD or CD player then there is a varying level of quality as to whet you get, that's not dependant on the skills of the company making the CD/DVD.
With the PS2/xbox/GC what you get out of the format doesn't matter as to what medium you use, it matters how skilled a coder you are and what you're understanding of the machine is. This will continue until somebody turns round and goes 'you can't get better hardware than that', or it reaches a point where certain aspects are no longer recognisable to the human eye.
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