Current gen has been exactly as impressive as I expected, that is, not much. It's by far the smallest leap in visuals across gens that we've had, and people denying it are either delusional or don't remember previous leaps. Even the previous leap was much more impressive; I distinctly remember seeing screenshots of my first "new gen" game, Oblivion, and being incredulous that such an image quality was possible in real time.
The harsh truth is that, as we hit physical limitations on hardware (we've been there for many, many years now, which is what necessitated the development of dual and quad cores) AND the diminishing returns on polygon->visual fidelity, this was absolutely going to happen. What's more, it will be more pronounced in the future; barring any major technology breakthrough (which seems more and more unlikely as years pass), the generation after this will be even less of a leap, more distanced in time than this to the previous, or likely both.
And I'm personally OK with that, frankly. We're well far beyond the visual fidelity I need for games.