I think we've passed the point where Joe Public truly sees, understands, and appreciates the difference between real-time games and pre-rendered CG. I think the average person won't notice a big leap until we reach something approaching modern movie CG, when games almost look like Avatar and Transformers and Avengers. And... honestly, even then, I'm sure there a lot of people out there who don't understand how much more impressive Hulk in The Avengers is than Marcus Fenix.
I think that, from here on, there will be a lot of, "Well, I can tell that looks better, but I can't exactly say why it looks better." I don't think we're going to get that same kind of HOLY SHIT leap from the general public that Gears of War got until we can actually make lifelike humans, indistinguishable from real life. And considering we're not even there yet in movies, I'd say we have a ways to go.