I agreed most of what of you said and i think this generation videogame consoles can do or match Toy Story graphic. I think Toy Story was possibly the first CG movie, if not the first, possibly one of the first. It likely we won't see life-like graphic until next generation console which i think might come out in 2020 or around there. But for this generation consoles, i think we should get graphic that is just like CG quality like those CG video in FMV.
I understand very much why this generation (ps4 and xbone) can't do 4K, especially in 3D because of a performance hit. Even if sony and microsoft enable 4K for this generation, 3D graphic would have to be downgrade or reduce a lot on 4K resolution running at stable framerate of 30fps or higher than on 2K. By that i mean polygons, texture, light sources, dynamic range, other effects, etc. will be less on 4K than on 2K.
Remember 4K resolution is like 3840 x 2160p while "2K" or 1080p is 1920 x 1080p. So 4K has 4 times more pixels or resolution than 2K. imagine running at that ultra sharp resolution, things have to give for it to run it at a stable 30fps or higher.
many current generation games have trouble running at 1080p at a stable frame rate of 30fps, some actually runs lower resolution than that especially on xbone's version. 4K is still new and in early stage for 3D gaming. nowadays, maybe some top of the line PC can do 4K and at 60fps, but they are very expensive. Possibly costing around $2,000? One game that can i think of supports 4K for PC gaming is GTA V.
I agreed next generation consoles for sony and microsoft will supports 4K resolution. Not only 4K resolution but in next generation graphic too.