I'm sorry, but whatever way you look at it, consoles ARE slowing down the development of games. Every big company, and most of the mid-size names go with multi-platform, which means they have to keep making stuff for hardware that's going on 10 years or so by now. That's a decade's worth of tech advancement made invalid just because of consoles
Similar to your reply, this will not add nothing new: I already said that it will hit multi-platform devs.
To add something new: No, it will not make a decade of tech advancement invalid. If you read my posts you would know that it's about optimization. If I have to put up one game that specializes on optimization it would probably World in Conflict. A game that looks great, gets my PC going and if minimized (to look at it with the task manager) needs less than half a GB memory. Take a look at modern internet browsers (especially stuff like Java and Flash) and their memory management, I hope you get my point then.
But let's take a look at 10 years ago and the great games of then. Especially of what made them great. I'm not too sure what you played, so I'm going from my personal experience and this page
[1].
I'll start of with "TLoZ: Wind Waker". Is it a game that would be better with 10 years advancement? Eh, maybe. Probably not by much, pretty sure that it wouldn't be worth it. Even if I had a Wii U, I wouldn't buy the HD remake.
Next up: "WC3: Frozen Throne". What made the game great? Tower defense maps, DotA and some other stuff. TDs and DotA are nowadays genres.
"F-Zero GX": That game is the reason why I can't play racing games anymore. Nothing beats 1000 km/h while listening to an awesome soundtrack. Also it had a great learning curve (Easy: Beatable if you're new; up to Master: Memorize every track and how to drive it with your machine).
"Beyond Good & Evil": Guess what I recently bought on GoG.com? I guarantee it wasn't because of the graphics.
Do these games need the advancement to be better games? Simply put: No. I don't play games because they are "something that was impossible 10 years ago". I started gaming with an Amiga A500, so I might be biased. Still, I'm not impressed with the point that "Spec Ops: The Line" brought across, when a game like "Cannonfodder" already started with the intro song "War has never been so much fun".
Good god, that now sounds like a pretty bad, nostalgic rant. Still, there are great games and they are not great because of the underlying hardware, but because the games are good. Heck, the Amiga had a resolution that didn't really go above 640x480 and I still think that the first two Monkey Islands was great. Also games like Elite, Lemmings,...... Let's just say that great games don't need technological advancements.