The thing is, that people expect the quality you get from raytracers, and all the effects you can achieve with prerendering. I'm not disappointed on next gen consoles, I think they are great, but you shouldn't expect these kinds of leaps in technology within this timeframe. But the games for the next gen look great. We are getting all sorts of cool "new" features for realtime graphics, that can be ran at good framerates. Like parallax mapping, normalmaps, more complex postprocess effects, HDR, etc. These have been available for a while with highend PC graphics cards, but not in the level that you could use them in game engines unless all consumers had the latest cards. Doom 3 was a step forward, which sported normalmaps and neat perpixel shading. But coming close to a raytracer, no.
Prerendered animations don't rely on normalmaps to make it look like there are alot of geometry, most of them just do have alot of it. Because a raytracer doesn't try to achieve interactive framerates, you can add all the detail you want, but it will of course increase the rendertimes.