So really I can't think of where they can be going with a PS4. Graphics are about as good as there gonna get in this age, and thats usually been the biggest difference in consoles. One thing I am hoping, however, is that they will make sure it can play games like Skyrim flawlessly (meaning you can sprint on a horse across the entire world with no even slight lags or freezes)
You honestly think they can't improve the graphics? To disprove that all you have to do is look at current gen PC's. The graphics on those are far superior to the Console graphics in every way. Better draw distances, less stutter, much better textures, less aliasing, better lighting, ect. We are far from what can be done on consoles if, and that's the catch, if they do put in current gen hardware. Whether that happens or not we'll know soon but I can't imagine they would come out with new consoles without some significant changes to the internal hardware. Currently we are a long way from what is possible graphically. I don't know why anyone would think the current consoles have such great graphics because there is so much room for improvement on every level. They have definitely come a long way from the days of Asteroids but there is still a lot of progression to come. If nothing else I'm hoping like you that games like Skyrim will at least run smoother on the next gen gear. I'm currently playing on the 360 and the long load times as well as the constant little freezes as I move across the game world are seriously annoying. I have 4 characters and several hundred house of play on this game so I've put up with it for quite a long time now. I'll personally take whatever performance improvements they can give. Hopefully it will be a lot better than what we currently have.