I don't think I understand what "next-gen" is supposed to look like. All I know is "current-gen" has about reached its usefulness for me. I was never able to get passed the aliasing, shimmering, and palletized textures of the PS2. XBox did okay for me for a while, but after getting used to hi-end PC games like FarCry, HL2, Doom3, FEAR, etc. , it's looking extremely dated. Even top-tier titles like Halo2 and Forza have bad LOD popping, short draw distances, no effective anti-aliasing, and low frame-rates. Sure, XBox devs are doing some normal mapping, nice bloom effects, etc. to take some decent screenshots. And don't get me wrong, certain titles still look great based on their art style and design. But because the vast majority still have such low-res textures and 3d models, when combined with the low resolution screen modes, the visuals are just not cutting it.
I much prefer gaming on my sofa in front of my 50" Samsung DLP with 800Watts of 5.1 Dolby Digital surround sound, than at my computer desk. Give me 720P+AA+HDR, better draw distances, models, and textures, and I'll be good to go. I think Full-Auto looks awesome. I want fun games, and it seems to be that. Art direction and design are more important to what looks next-gen than any technical hardware or software implementations. I can appreciate that other people want/expect more than I do. But to me, it is what it is. This is where the technology is at today, there is where the tools are at today. We know there will always be something better tommorrow, but I have grown tired of where the technology was yesterday.