With each new generation of consoles, the differance in terms of graphics seems to be less and less noticable. I remember when just getting a games sequel on the same system was a massive step forward. Now some sequels actually look worse or play worse than their predecessors.
I think it's easy to forget what the graphics on old games were like. Play GT4 then GT5, there's really quite a difference. You quickly get used to current-gen graphics and don't realise quite how much more detail there is now.
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Other than people online, ive known loads of people with 360's and PS3's, but only one person with a Wii.