I still get the sense that a lot more could be squeezed out of the 360 (in a similar way to how people got so much out of the PS2 in it's later years, although that has changed somewhat now, due to the presence of it's bigger brother). One of the problems for the 360, as discussed in another thread, is M$'s habit of dropping hardware at the first announcement of their replacement.

Another problem for the 360 is that the same M$ charges companies far more for the use of the 360 gaming engine if the game being produced is going to be multiple disks. Which, as games start to utilise the BD format more effectively, is something that could be a cause for concern with regard to possible multi-format games (why buy a multi-disk version when you can have the same game on a single disk). Newer PCs and the PS3 will have a long way to go before multiple disk games come out on Blu-Ray (oh, but how I long for the day that happens ).

In the end though, it will be the mods that make the game, rather than the game that makes the game!