Go watch Avatar again, we have a long ways to go in visuals. Obviously that's a bar that's way too high, but we are nowhere close to that level of runtime graphics (meaning the entire environment and systems involved being rendered in real time on a video game console) also most games don't come close to 1080p/60fps.
Either way the increased overhead for more complex interactions and number of working systems (AI, liquids, atmosphere, physics, etc) and better textures will pay huge dividends in how games can look.