I think there's plenty of other things in the way of developers realizing their ambitions, more important than just hardware power. Better tools, bigger budgets, and of course more time.. are some of the more pressing issues resulting in developers having to temper ambitions.
I mean... much more powerful hardware than consoles already currently exists.. and by the end of this year, that power is going to extend even further... So the actual technology itself doesn't seem to be a problem currently, it's the fact that tech takes time to become as cost effective as consoles need to be, that's the problem. And I doubt Sony or Nintendo... (certainly not Microsoft) is going to be trying to build completely custom, expensive chips which are extremely powerful, but new, and difficult to code for. Sony learned a hard lesson from that, and as I said, I don't think they're eager to go down that road anytime soon.
Everything points to the industry consolidating, and that goes from development studios to even hardware itself. The consoles are more similar than ever before. Besides some slight custom tweaks with considerations to their own wants and desires.. they're largely similar.
I say all that though.. but I definitely agree with you that it isn't great for us gamers. Things were MUCH more interesting when console hardware and technology was really diverse, with new processors and graphics accelerators with new features in hardware. Completely different architectures from completely different companies. You also had amazing arcade technology pushing a lot of those advancements. It was an amazing time for sure.. I just think that the push now is to have everything standardized so that they can target and support the largest markets possible.