I think within 12-18 months you'll see the vast majority of games (on either console) running at 1080p. The PS4 versions will probably look better, but games on either system will look more than good enough IMO.
The Xbox One GPU has only half the pixel fill-rate of PS4 so I doubt it, it will likely stay 720P upscaled unless PS4's GPU is being extremely under-utilised right now.
IMO developers won't go to any lengths to add extra effects to make the PS4 version 'look better', they will just develop on Xbox One at 720P and then use the extra GPU power of PS4 to turn up the resolution/AA etc as we have seen so far.
There has been a lot said about ESRAM but the elephant in the room is the GPU, it always has been ESRAM simply served as a distraction.