I think u guys have a slight misunderstanding here
Im pretty sure we can all agree that computational power increases well faster than linearly. with that said, graphics isnt really a byproduct of pure computations...its not really a brute force algorithm which will get there earlier with more ops per second....
I think what liquid was getting at, is that we are at a kind of a wall that doesnt relate to computational power but is more at how much manpower it takes.
now Im not terribly versed at this so if I say something wrong, correct me. but a progression since late 90s to mid 2000s was visible- objects became multipoly, textures got higher and higher resolution. but at some point, making so many polygons will take an insane number of man hours, and to a lesser extent, so will high-res texturing.
making a graphically advanced game today is so much harder and resource-demanding than it was to make a modern graphically advanced game in 99...and Im talking strictly pc, cutting edge graphics.
personally, I think graphics will progress, but the progression will slow down drastically. we'll have very few cutting edge graphical games per several years.