I don't know what the big deal is anyway with all of this tech. I think art direction is much more important to a game. Metroid was just mentioned as a great looking game in spite of a lack of technical tricks. The world of Tallon IV is alive in a way that I don't find Halo is.
I think eventually we'll have more sytem pushers. Factor 5 seems to be cooking up something special and Nintendo has been working hard to court some of the big guys in the 3rd party world. God knows what some of the 2nd parties are doing at the moment.