What other option was there?! How could any console in 2005 put in a GPU that wouldn't look dated now? The only reason tri-core CPUs don't look bad is because the consoles were 'ahead of the game' as it were, and CPU development hasn't seen the same explosive progression as GPUs. But there was literally no other choice. These consoles bled MS and Sony money as it was. There's no GPU option that'd be comparable. There's nothing they could have invented and included, at no amount of cost (dual SLI'd G70s from 2005 won't hold a candle to the latest GPU's), so your comparison doesn't make any sense.
I don't think you interpreted my post correctly.
I never said they should have chosen
newer architectures that would look less dated today. Of course that would've been impossible, as both ATI and nVidia churn out new and more efficient\feature-full architectures as fast as they can, and by 2004-2005 it wouldn't be realistic to choose anything with a feature-set higher than SM3.0 (which proved to be quite a good standing point, as DX10\SM4 was mostly ignored by game developers).
What I meant is that, if you're a console maker like Nintendo, MS or Sony, you're not as constrained in terms of execution units for your GPU as a regular consumer.
You have a budget and a heat+power envelope, from where you decide what components go in there.
You don't think that a "Xenos B" with 64 shaders, 24TMUs and 16 ROPs plus a "Xenon B" with 2 dual-threaded cores @ 2.5GHz could do a lot better visuals than the current system?
I know the Cell development was a technological investment made in the early 2000s, but the same way goes to the PS3.
Once you have to turn to your "CPU" to do GPU stuff, it's because you've bottlenecked your system in the wrong spots.
Sure, get the game developers to spend hundreds of thousands of code-monkey-hours in figuring out work-arounds for the aforementioned bottlenecks and they'll do wonders, but in the meanwhile you've spent tenths of millions on a game and if it doesn't sell millions of copies to get that investment back, there goes the developer (to bankrupcy).
On the flip side, these consoles are still managing to turn out good looking games on $200 boxes and they'll be getting cheaper.
Never questioned that, from a consumer point of view, at least.
They've also provided game developers with stable markets and multiple tiered options for games from downloads up to full disc titles.
I'll question that. Not even getting a good-looking game out and with positive reviews will grant a market success.
They've put up a pretty good fight against piracy too.
The PS3, yes. The X360, not really.
All in all I don't see what other realistic expectations could be had.
Neither do I, but just because I wasn't there to see what other choices could have been made.