I still don't understand the argument that better technology takes away a developer's ability to be artistic (and there's more to an art style than just "realistic or cartoony"... Call of Duty and Project Gotham Racing both attempt to look realistic but they still have very different aesthetics, for obvious reasons). There's no reason for advanced hardware to limit a developer's artistic possibilities.
As for animation and such, I agree that there's still a lack of polish thus far. However, we need to remember that the "next generation" is still quite new, and we're currently seeing products rushed to make release.
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