I'm predicting that this is the generation that RPGs finally make their return as my favorite genre. RPGs were my favorite games for a while because they usually had the best of several categories... The best graphics, music, and even story. They were incredibly immersive. Now, although there were several rpgs that I liked on PS2, I didn't get as much enjoyment as I did out of them on the PSX. One of the main reasons is graphics. Unless it is a strategy rpg, I certainly don't play rpgs for their battle system. In fact, most rpgs I've played, I've found the battle system to be tedious. I find the main reason I play rpgs are for expressiveness. Now, I actually feel that a lot of games were downgraded graphically, in a sense, once they hit the PS2.
The Final Fantasy series is one example. Although the character and enemy models looked superior to the PSX renditions, the backgrounds lost quite a bit. They didn't contain anywhere near the detail of the prerendered backgrounds of a game like Final Fantasy 8. Although I do like expressive characters, I'm someone that believes that a lot of if not the majority of a visual work's wow factor is in the background (if it does indeed have a background). I've been more a fan of landscapes than portraits, so naturally I was a bit let down visually.
What ESPECIALLY excites me with the Xbox360/PS3 is that these systems will have enough power not only to maintain the expressive nature of the models, but also they will be able to keep the backgrounds up to par and in full 3d. Look at the Final Fantasy 7 demo on PS3, and look at this game... The backgrounds look wonderful and the characters are extremely expressive as well.
Imagine a new Chrono Trigger with the backgrounds of Chrono Cross done in REAL TIME, with models as expressive as the ones here in Blue Dragon. Now it's easy to see why I'm so excited what this upcoming generation.