Goddamn it's looking as if the entire 'HD Generation' selling point was a mistake. I know the enthusiast upmarket values it extremely highly, but it appears that they are vastly outnumbered by consumers who just don't give a shit. Telling people that the graphics were great didn't register with the mass market because they had already been told that their 6th generation consoles had great graphics and they were satisfied.
The statements that people make on message boards about their motives don't even necessarily correspond with their own real behavior, nor that of the millions who don't care enough to read a gaming message board, let alone post in one.
No matter how much people appreciate the enhanced performance, features and resolution of the HD consoles, their aggregate behavior suggests that they are not buying these consoles because of their superior graphics and support for HD resolutions. No, they are buying them in spite of their superior graphics and support for HD in order to access their software libraries.
In short, people aren't nearly as interested in upgrading their TV game system as they are in buying currently published software, specifically "system sellers". Xbox 360 and PS3 both have these kinds of titles, but they have to work harder to justify higher system prices than they did last generation. And that is part of why the HD consoles have had such a hard time building and increasing their momentum in this generation.