The graphical arms race has been one of the worst things to happen to gaming.
Assuming "games are art", one of the things that bothers me about traditional art is hyper-realism. A friend of mine was an excellent artist, but would only draw celebs or cars. I found myself saying "this looks like a photograph" and later came to the conclusion that once art matches up with reality all you're really doing is appreciating someone's skill rather than the output itself. In this case a bunch of CS nerds are fapping over the idea of shoving more triangles down the pipe so the tires in Forza can be 10x rounder than last year's entry. For everyone else, the games will play the same and for the first hour we'll be saying "Wow, this looks amazing!" just like we've been doing with every new round of hardware since the 90s.
True innovation comes from game design. However, AAA devs won't take the risk because iterating over existing, proven ideas is easier than giving a designer with a weird idea a chance at doing something new. This year's Ass. Creed game will play exactly like the last 30 entries, but the arm blade will have 99999999999 triangles!!! Oh fucking boy, better sell the house and all my cars to buy an Nvidia 4070TI so I can see light refract off Lara Croft's ass or whatever the fuck.