The sense of presence you get even with the Rift Dev Kit with its low-res screen-door effect display and only 3DOF really is "holy shit!". Even in games with relatively crude and spartan graphics or dull gameplay can be transformed into a satisfying explorational experience just by the sense of actually being inside it.
But if we limit ourselves to the 2D displays of the next-gen consoles I think we will see great strides perhaps not in visual fidelity but in dynamic/procedural animation and interactive environments and physics. Graphics pretty much is "good enough" as it is and the things that is lagging are the other areas. I will however not miss blurry textures. Why do we still have those? HL2 had sharp textures gattemit..