This is a nice topic.
Imo this ties in nicely with the recent GDC speech of Jason Rubin.
The following is all IMO, so feel free to disagree.
As somewhere in the future graphical improvements will stop to be the most important factor on deciding which game to buy, as most people will probably not notice a difference between a 100.000 or a 150.000 polygon car (and that's a 50% improvement) in a GT3 like racing game, developers will need to improve other areas (Like physics and AI) even more than they are doing now, to differentiate their games.
This and the great amount of processing power that will be available in the next generations of game-consoles opens IMO a huge field of possible gameplay innovation based on physics and AI.
As an example take this small game:
porrasturvat
This is just an example for a game that would not be possible without ragdoll physics. Even if you don't like the game (I think it's hilarious but that's just me
) take it as a primitive example of a gameplay idea based on physics with graphics as a byproduct.
Live for speed would be another example where accurate simulation is a top priority and graphics, while still important, are not the deciding factor for playing this game.
IMO there are tons of gameplay possibilities based on physics.
I played around for hours with the
Actor demos and I'm sure I'm not alone.
Creative people could certainly come up with some neat mini-games or will find ways to integrate physics in new gameplay aspects of old genres.
For me this will be more exciting than the graphical improvement that naturally comes with the next generations of consoles.
I know from discussions around here that as "good" perceived physics need a lot of tweaking and balancing (there was the example of Driving Emotion Type S which IIRC featured an impressively detailed physics model, but was simply frustrating to drive), so this will certainly place another burden on the developers but IMO it's worth it.