So no, I wouldn't say that last generation millions of people willing paid more money for a console that they knew was less powerful.
Here's the difference between then and now.
Then, even a cyclops could play both versions of games and notice that it wasn't just visuals and frame rate that were impaired on one version but that online features were blatantly missing. Sure people would say otherwise on the interweb but you know how people are on the net, they just say stuff to save face when in private they really know what's what. It was impossible to not notice the difference. And quite frankly many did say that the differences were noticeable and obvious and at the same time they didn't care. Which is totally fine, I can understand people not caring, it's not always the big deal forums sometimes make this out to be. Some people really just want to turn on their box and play games irregardless of what they look like.
Today, the versions of games for the most part are at visual parity aside from resolution, and I'd bet anyone here $10,000 that if you showed xb1/ps4 versions of the same game side by side to 100 people that at least 90 of them would see zero difference. That is not a bet I would have taken last gen because the difference was so obvious then, but it's not so obvious now.
On the forums people try to make the xb1/ps4 difference seem like it's between a super computer and a Colecovision, and then they act confused as to why anyone would chose a $399 xb1 over a $399 ps4. In the end they are both weak little machines trying to render what they can at a fixed price point and heat profile, which one being a little weaker than the other but still largely the same. What makes it even more strange is how some of these same people harped on and on for years about the same 5 exclusives over and over again last gen as for their reason to choose one platform over another, yet they can't see that point of view now when both machines this gen are visually much closer than they were last gen and now at the same price.
At $499 vs $399? Sure, that's a big price difference. But that's gone now and we know most people don't read Digital Foundry. They will see the games in stores or at their friends homes and not see any difference between the two, so they will have to buy based on brand, what friends have, feature set, etc. In the respect the two machines will be a toss up depending on what your wants, needs and preferences are. If you can't bear to play any game that doesn't rhyme with "illzone" or "ncharted" then you will buy a ps4. If you worship at the altar of Halo and named your first borne Marcus and your second borne Fenix then you will buy an xb1. For the rest they are two similar boxes playing similar games at similar price points, and their purchase choice will be made by some other means.
Which is why I think the claim of "who would pick a $399 xb1 over a $399 ps4" is silly.