Would it really be so bad?
Imagine if no one upgraded their graphics from the move to this generation. Just look at Call of Duty: Black Ops on the Wii and tell me that next-gen games couldn't function with limited graphics. With all of those spare resources of the newer systems, what kind of games could be made? The actual quality of games would improve tremendously, and games that previously pushed systems like the PS2 to the limit could now function with lots of room for improvement.
Or maybe I'm just a crazy lunatic.
LOOK WHO CAME: