On the next generation of consoles.

This came up the other day when, after having booted up the old Dreamcast for fun, a friend of mine commented something to effect of "There is really no need for better graphics than these."  This got me thinkin'.  With the launch of the Wii, PS3, and Xbox 360 now well behind, in a year or two we will inevitably start yearing talk about the PS4, Wii 2, or whatever.  But where do we have to go?  Most of the steps in consoles to this point in time made sense:  We moved to machines that could support larger and larger game worlds, jumper from 2D to 3D gaming, gained online capabilites, cinematic cutscenes, and now pretty life like graphics.  So what's going to be the point of the next console?  It seems to me that at this point, better graphics is the only real thing to add on to it, and this won't lead to any new innovation's in gaming.  Before 3D graphics greated many new genres of games, internet let us play in different ways, but now better graphics will just make developing games that much more expensive and lead to no new fun ways to play.  The Wii came out and went with a gameplay-not-graphics approach, and going in that direction of new creative ways to play games could lead to innovation and some new gaming experiences, but if Sony and Microsoft are simply going to make a console with more power and more media playign crap the next time around, then maybe we should just keep what we have as consumers and tell the video game industry that we will upgrade when there is good reason too, not just automaticlly every 3-4 years.  Will this happen?  The answer is of coure "super-duper unlikely".  It be nice to break free of the almost mandatory console cycle, but I suppose we must watch and see what happens.