Realtime 3D graphics still lacks a few important things:
- high quality geometry and shader/texture antialiasing
- high quality displacement mapping
- advanced lighting and shading effects
- really high geometry complexity
Expect to see quite a lot of CGI cutscenes in this generation, too. Blur studio (known for stuff like the Return to Wolfenstein and Warhammer 40K intro) is working on four different game cinematics nowadays, including Hellgate and Company of Heroes; then there's Blizzard Cinematics; and many of the japanese X360 games were advertised with CGI sequences as well.