What to expect from the next console generation?

I've been thinking since they've announced development of the PS4 that I can't really imagine how much better things can get.

Prior, it's been pretty clear that the next generation of consoles will massively increase the quality of graphics, add in the buzz technology of the day (cd's, blu-ray, bluetooth).

But, I've noticed with the latest run of console games that I'm never really left wanting for any additional graphical or processing power. I feel most games run smooth enough for my purposes. In fact, for anything to improve much, I'd imagine game development to become prohibitively expensive.

Can anyone give me some idea of what to expect from the coming generation (besides working online, har har)?