Dennard scaling failed around 2003-ish. A lot of the reason why it feels like image quality improves so slowly is that graphics hardware is improving so slowly. In the late 90's when 3D acceleration was a brand new thing, performance clean doubled every year (quadrupled if you count voodoo to voodoo 2 SLI) then things stabilized around 40-60%/year until 2003 and a lot of new exciting features like hardware T&L, per pixel fixed function lighting, pixel shading, anisotropic filtering and MSAA cheap enough to actually use got added. Now it has tapered of to about 20% per year.
My old metric for when it was worth to buy a new CPU or new graphics card from the times of Dennard scaling was when performance had clean trippled. That was just a couple of years inbetween. Pentium MMX 233 to 2 GHz Athlon 64 was like 5 years. Voodoo 2 to Radeon 9700 pro was a little over 4 years. Voodoo 2 had no shaders, no hardware T&L, no anisotropic filtering, 90 mpixels/s and 180 mtexels/s fillrate. 9700 pro had those things and a 2700 mpixels/s fillrate and enough memory bandwidth to do it justice. That's where that Quake 2 to Far cry image quality leap comes from.
3x increase in performance is really not that much. That's just one step up in resolution (e.g. 1080p to 1440p) with a small bump in image quality. Much less than that and it's barely noticeable.
My old metric for when it was worth to buy a new CPU or new graphics card from the times of Dennard scaling was when performance had clean trippled. That was just a couple of years inbetween. Pentium MMX 233 to 2 GHz Athlon 64 was like 5 years. Voodoo 2 to Radeon 9700 pro was a little over 4 years. Voodoo 2 had no shaders, no hardware T&L, no anisotropic filtering, 90 mpixels/s and 180 mtexels/s fillrate. 9700 pro had those things and a 2700 mpixels/s fillrate and enough memory bandwidth to do it justice. That's where that Quake 2 to Far cry image quality leap comes from.
3x increase in performance is really not that much. That's just one step up in resolution (e.g. 1080p to 1440p) with a small bump in image quality. Much less than that and it's barely noticeable.