yeah any popular platform that artificially limits itself will limit the industry as a whole
the good it does is that it usually results from cost-effectiveness and so more people get interested in, and therefore involved in the industry
but it's just hard for consoles to keep up with technology in their nature. they can't release new consoles to keep up with rising standards quickly enough without making their consumer-base upset, but the platform is popular enough so the standards level out to match this, and so the rise of standards is curbed unnaturally. in some ways, this is a good thing, because 'spectacle creep,' as it's been called (how game devs are seeking to make grander and grander games to beat past works), can be damaging as well, but i think maybe if they had larger parameters to work with, the effect could be helped.
uhh not that that's entirely relevant to the topic at hand but those are my thoughts