I don't see the phrasing "blur the lines between generations" to mean "a half-step console" and I don't believe Cerny understands it this way either.
Normally when people in the industry have talked about "blurring the lines between generations" they're talking about subverting the traditional generational transition paradigm to move towards a more iterative approach (ala PC or smartphones). It's normally understood to be a statement towards software comparability between new and legacy hardware.
The PS4 Pro (and clearly XB1X) are clearly "mid-gen" or "half-step" consoles, because they are consoles still securely rooted in the existing console generation (i.e. having no exclusive software developed for them) but offering additional hardware performance.
A console "blurring the line between generations" would be one that is released with both backwards and forwards compatibility, meaning new software can run BOTH on the newest hardware and legacy hardware, just as legacy software can run on the newest hardware.
MS, disingenuously used this phrasing to talk about XB1X, when in actual fact they have since clarified that it is indeed an XB1. I'm under no illusion that the next Xbox (or PS5 for that matter) will be BC and FC. Both will likely be BC, but then that isn't "blurring the line between generations", since BC capable consoles aren't in any way a departure from the traditional console generational model (and BC has in fact been fairly standard up until last generation).