Well I've seen a lot of next-gen consoles launched, and it'll probably be a bit of both.
There is going to be a lot of games that look like they could have been done on the previous console, and there will be games that just blow you away, doing things - utilizing features or functions - that Xbox360 never could have handled.
What I am curious about, is how much longer will games keep "getting better?" We're reaching a point now within the next dozen years of games being indistinguishable in so many ways from reality. Makes me think future innovations will come less from "look how amazing the graphics!" to "immersion." AR glasses, body suits, 3D or virtual reality...etc. Or maybe that's just crazy talk, haha.