In terms of graphics, the last major step is to get realistic lighting and shadows with physically based shading; beyond that, the finer stuff like AA or asset details are barely noticeable for the average person.
That level of quality will become possible pretty soon on mobile devices - however, there's a huge jump in asset production costs, so it's reasonable to expect that only ports of AA console/PC games will be able to make the jump.
The more interesting aspect IMHO is the gameplay, as no touch based device can keep up with a good controller. If tablet gaming wants to get competitive with consoles, it'll require an add-on of some sorts for that, and the ability to connect to a large screen TV (HDMI output). Android devices will probably get the necessary accessories at a cheap price but I'm not sure if Apple is going to go low enough for the setup to get competitive.
And then there are the additional issues with storage; even with downsized assets, a single average AA game would be far too big for even a 64GB tablet. So all in all, a portable device that can compete with a dedicated console would require a lot of overpriced add-ons and a way too large format, at which point it'd cease to be a tablet. And then there'd be the publisher side issues of porting from an x86 based architecture and such...