Sooner or later, the physical size of consumers living rooms will determine the upper limit for how highres a screen can be.
With that said, believing that infinite growth is possible in an infinite world is still both unscientific and retarded. While the economical cost of consumtion of luxury goods might decrease due to efficient production, the same is not always true for the ecological cost. At some point we will have to transform to a society where production efficiency increases no longer means that we buy a larger number of iphones every month, where we instead use increased efficiency to work less and increase spare time.
If you ask an scientist working with climate change, i guss he/she would say that we already have passed that point..
Oh wait, you aren't living in the us, are you?
Also, it's funny how non-developers looks at the concept of a "game engine". Any time that a game studio releases a tech demo and proclaims "this is our new game engine!" it's almost always the old one with improvements. Might be as little as tweaked shaders and new 3d-art.
A game i worked with got a "best technology" award from a magazine in the end of the last year. What the frak do the reviewers know about our tech anyway? For all i know, we used some quite instable and often non-revolutionary tech to piece together a game that looks different from others.
It appears to be much easier to simply spend oodles on marketing and advertising rather then produce something original.
Blame it on the market, history tells us that good games and games that get good reviews does not necessarily sell. Well advertised and hyped games, however, DO sell.