Interesting philosophy Streeteh. You may have a point - even if we see technology and processing power continuing to improve, at the end of the day, the visuals we see have to be created by someone in the first place (in terms of textures, character models etc).
Personally, I still think there is a lot of room for improvement in terms of graphics. It's easy to find flaws even in the latest and greatest like FC2. Remember too, that even if you have incredible design and artwork, all that can be ruined by something as simple as an engine which doesn't handle clipping properly, so you have bodies stuck inside rocks or something stupid.
My general view on graphics in gaming over the past decade is this:
-Pre-2000, most games look very dated and it has a significant negative impact on my enjoyment of the game
-From 2000-2003, most games look good enough to play and enjoy - things like Deus Ex, NOLF2, CoD, NFS5/6/7, Chrome etc while not impressive by today's standards, at least portray the game world in a good enough light to be able to play without worrying too much about it.
-In 2004 there was a big improvement, with FC, D3 and HL2 all being released. This set the benchmark for a few years and IMO those engines still look good.
-The release of Crysis a little over a year ago shifted the goalposts again, and that's the kind of level most developers are/should be aiming at for titles being released today.