These games are getting very close to the original Xbox quality for sure, but many of them still miss some basic last gen graphics features such as normal mapping.And? Look at NOVA3,Real racing2,Dark Meadow,Galaxy on fire 2 HD etc Do You think there is 40x drop, in quality in compare with consoles?
Real time lighting (with real time shadows) is something that's still completely missing from mobile games. Static light maps look pretty good and fake shadow blobs are often enough to replace true real time shadows. Transition to per pixel HDR lighting with real time calculated shadows for all light sources costs huge chunk of performance (5x+ more for GPU). Add in some cheap GI approximation (such as SSAO) and a stack of post processing effects and you'll match the current gen graphics quality.
One of the reasons why mobile games look comparable (or even better) to Xbox 1 and PS2 games is the improved content creation tools. Tools have surely improved a lot in the last years. Small screens (and tiny pixels) hide the imperfections of current runtime tech, and with the current rate of mobile GPU development, I am sure we will match current gen console quality in a few years.