Yes; that's why I like Indie games more now; they are more creative with game mechanics + story telling. I think the current next-gen hardware is not enough of a leap to make enough difference; if you just take the Unreal engine it'll all look nice now. Complex AI or actual realistic human + animal movement of body/face (no, currently they are not) would require a lot more advances in hardware/software. For a big jump in AI I would say memristors would be something. But after HP shouting that they would be selling them last year, the hype died down :)