The problem is that all previous console generations have blown us away from day #1. We expect great things because great things were delivered to us in the past (granted, without tons of trailers, preview vids, and message board hype back in the day). This time around, that wasn't the case re: initial console performance. Why pay the huge up-front costs to adopt early when developers aren't even on top of the systems yet? I'm glad I demo'd both the Ps3 and 360 heavily, and learned that they weren't worth the early purchase (for me). Of course some of the blame is to be shared with console-makers themselves and the dev kits (or lack of dev kits) that were circulated.
MaddenMan, this isn't a 2K v. Madden thread - I have no clue why some version APF 2K8 wasn't released on at least the XBOX - it certainly isn't a complete next-gen title.
Honestly, I think that the PS3 / 360 / Wii gen came too early. Xbox was really hitting its stride, and the continued success of the PS2 demonstrates that perhaps the console makers should have held off. A Wii released in 07 or 08 would likely have much better graphics (although I can't blame Nintendo for releasing the Wii when they did - GC's time had run out, unlike Xbox and Ps2).