I just skimmed this thread, so I apologize if someone else already said this, but one question that keeps getting asked is "What can better hardware do besides better graphics?"
We talked about that in the Xbox 720 thread. The answer is, we don't know what better hardware can do besides better graphics because until the better hardware is there for devs to play with no one is investing the resources in figuring out what they can do with it. It used to be that you could look at PC games to get an idea of what console games could do in the future, but that's no longer the case because almost every major release, the ones where they might really be pushing the tech available, is multiplat now and therefore limited by what the consoles can do.