Exactly. No way 4K is going to be used in games (unless you want your visuals to lack compared to competition).
I think it's safe assumption 4K output will be supported, just like 1080P is on current consoles even though most games are 720P.
If you look at one of Kotakus links to a random internet post of the first mention of Orbis, you'll see the alleged specs are allegedly significantly lower than Xbox3 (for example, 2GB of RAM=Orbis, 4GB of RAM=XB3). So in that sense, you're not going to have the kind of power surplus to be using wild resolutions.
It kind of makes me put Epic's power pushing in a new light. It suddenly makes sense as Epic's attempt to push Sony to boost their baseline so as not to limit multiplats. Not saying that is what is going on, but it would make sense.
My sense would be if PS4 is really say, half the RAM of XB3, Epic neednt worry, the market would likely consolidate around XB3 (especially assuming they both launch the same year), and PS4 will have little market presence. Power is really all that matters in core videogaming, and everybody knows it.